Attachment, PDC 488

Page 1 

ADC 469 

Consolidating MILSBILLS into DLMS Volume 5, Finance 

1. ORIGINATOR: DLA Logistics Management Standards 

2. FUNCTIONAL AREA: Primary: Finance 

3. REFERENCES: 

a. DoD 7000.14-R, DoD Financial Regulation 

b. DoD 4000.25-7-M, Military Standard Billing System (MILSBILLS) 

c. DoD 4000.25-M, Volume 5 – Finance 

d. DODI 4140.01, DOD Supply Chain Materiel Management Policy 

e. 4000.25-10-M, Defense Automatic Addressing System (DAAS) 

4. REQUESTED CHANGE: 

a. Description of Change: This change consolidates chapters of MILSBILLS 

(reference b) with DLMS Volume 5 (reference c) to enable DLMS Volume 5 to be the single 

manual for logistics billing. A summary of comments resolution is provided in enclosure (4). 

b. Background:

(1) The associated Proposed DLMS Changes were reviewed during the November 

2011 meeting of the Finance Process Review Committee (PRC) consolidating the MILSBILLS 

(reference b) and DLMS Volume 5 (reference c) manuals. A single manual is easier to maintain 

and provides a common source for implementers. 

(2) DODI 4140.01 (reference d) designates the MILS/DLMS manuals as Defense 

Logistics Manuals (DLMS). The DLA Logistics Management Standards office is required to 

publish the updated DLMS manuals within six months of the instruction being signed out. The 

changes in this ADC will be incorporated into the superseding DLM 4000.25, Volume 4. 

b. Detailed Procedures: Revise DoD 4000.25-M, Volume 5. Each of the proposed 

DLMS Volume 5 chapters and appendices is provided in enclosure (1) of this ADC. A brief 

summary of changes is provided.

(1) Chapter 1 – Enclosure (1) includes modifications to now cover DLMS and legacy 

DLSS transactions; incorporates MILSBILLS sections for referencing Service specific billing 

procedures; incorporates DLMS and MILSBILLS procedures for simulated exercises. 

(2) Chapter 2 – The existing DLMS version of Chapter 2 is organized differently than 

MILSBILLS and does not always align on procedures. Enclosure (2) provides a side-by-side 
Attachment, PDC 488

Page 2 

comparison of MILSBILLS sections to the DLMS equivalent language and is color coded to 

show the basis for accepted language contained in enclosure (1). 

(3) Chapter 3 – The existing DLMS Volume 5 chapter and the MILSBILLS version 

are very similar, but use different wording in places to describe the same policy. This change 

generally defers to MILSBILLS language as being more current and detailed. The significant 

change is the addition of subsection C3.3.2 from MILSBILLS. 

(4) Chapter 4 – The existing DLMS version of Chapter 4 is organized differently than 

MILSBILLS and does not always align on procedures. Enclosure (3) provides a side-by-side 

comparison of DLMS sections to the MILSBILLS equivalent language and is color coded to 

show the basis for accepted language contained in enclosure (1). 

(5) Chapter 5 – The existing DLMS Volume 5 chapter and MILSBILLS chapter 5 are 

very similar. This change adds in references to the Appendix 2 from MILSBILLS, corrects the 

Central Accounts Office for the Air Force, and updates the DoD Director of Budget and Finance 

address. 

(6) Chapter 6 – Section 2 of this chapter was deleted as duplicative of information 

covered in the Defense Automatic Addressing System (DAAS) manual, 4000.25-10-M 

(reference e). The information regarding MILSINQ and some URLs were updated. 

(7) Chapter 7 – This chapter only exists in DLMS and was added by ADC 328. This 

change inserts URLs to the “Funds Availability Request and Reply formats and incorporates 

editorial edits to clarify procedures. 

(8) Appendix 1 – Existing DLMS Volume 5 Appendix 1 is deleted. The FPRC 

membership link is now incorporated into DLMS Volume 5 Chapter 1. The revised Appendix 1 

is incorporated from MILBILLS Appendix 1. The URLs linking to the latest fund code files on 

the DLA Logistics Management Standards website will be maintained. 

(9) Appendix 2 – Appendix 2 incorporates MILBILLS Appendix 2. 

(10) Appendix 3– Appendix 3 incorporates MILBILLS Appendix 3. However, rather 

than publishing the formats, the appendix page provides a URL linking to each format. 

5. ALTERNATIVES: Continue maintaining separate manuals. This alternative results in 

inconsistent policy and is resource intensive. It is rejected. 

6. REASON FOR CHANGE: 

a. Provides a single manual for logistics finance policy to achieve consistency and 

administrative efficiency. 

7. ADVANTAGES AND DISADVANTAGES: 

a. Advantages: Provides processors of logistics bills a single source for the procedures. 

Eliminates risks of confusion from any differences in the language between the manuals.
Attachment, PDC 488

Page 3 

b. Disadvantages: None

8. NOTE ANY REGULATIONS OR GUIDANCE: 

a. DoDI 41040.01, DoD Supply Chain Materiel Management Policy 

b. DoD 4140.1-R, DoD Supply Chain Materiel Management Regulations 

c. DoD 7000.14-R, DoD Financial Regulation 

9. IMPACT: 

a. Policy Impact: None. Incorporated changes from PDCs for consistency. 

b. Publications: DLMS Volume 5 is modified to incorporate the changes of the 

enclosure (1).

c. Data: None 
DoD 4000.25-M, Volume 5, XXXX 2012 

C1-1 Enclosure (1), CHAPTER 1 

C1. CHAPTER 1 

INTRODUCTION 

C1.1. GENERAL 

 C1.1.1. Purpose. This volume provides Defense Logistics Management System 

(DLMS) standard procedures for billing and related adjustments for sales of materiel 

and related services, collectively referred to as the Military Standard Billing System 

(MILSBILLS). This includes the related standard transactions for exchanging data in 

compliance with the procedures using either the DLMS Supplements (DS) variable 

length format or the legacy Defense Logistics Standards Systems (DLSS) fixed length 

80 record position format. 

 C1.1.1.1. New and migrating systems implementations of the DLMS are to 

comply with the DLMS Supplements to Federal Implementation Conventions (ICs) for 

American National Standards Institute (ANSI) Accredited Standards Committee (ASC) 

X12 in accordance with DoD Directive 8190.1, “DoD Logistics Use of Electronic Data 

Interchange (EDI) Standards,”.May 5, 2000. The relevant DLMS Supplements are the 

DLMS 810L (Logistics Bill), DLMS 812R (Logistics Bill Adjustment Request), and DLMS 

812L (Logistics Bill Adjustment Request Response). All DLMS Supplements to Federal 

ICs may be accessed at www.dla.mil/j-6/dlmso/eLibrary/TransFormats/140_997.asp. 

 C1.1.1.2. DLSS is the legacy implementation for billing, previously published 

as part of MILSBILLS. See Appendix 3 for the list of billing related document identifier 

code (DIC) formats. 

 C1.2.1. Use of This Volume. Use of this volume requires simultaneous access to 

DLMS Manual Volume 1 administrative items such as lists of acronyms and 

abbreviations, terms and definitions, and references; instructions for acquiring access to 

the DLMS standards data base; DLMS-to-Defense Logistics Standard System (DLSS) 

cross-references and conversion guides; specific guidance that applies to all 

implementation conventions; and functional and technical information that is relatively 

stable and applies to the DLMS as a whole. 

C1.2. POLICY 

 C1.2.1. DoD 7000.14-R, “Department of Defense Financial Management 

Regulations,” provides the DoD policies governing procedures in this volume. 

 C1.2.2. DoD 4140.01-R, “DoD Supply Chain Materiel Management Regulation,” 

May 23, 2003 provides the DoD policies and governing procedures in this volume. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C1-2 Enclosure (1), CHAPTER 1 

C1.3. APPLICABILITY. This volume applies to the Office of the Secretary of Defense, 

Military Departments, Joint Staff, Unified and Specified Commands, Defense Agencies, 

and Defense Organizations (hereafter referred to collectively as "DoD Components") 

and, by agreement, to other organizations participating in the DLMS. 

C1.4. FINANCE PROCESS REVIEW COMMITTEE. The Finance Process Review 

Committee (PRC) is the forum through which the DoD Components and other 

participating organizations may participate in the development, expansion, 

improvement, maintenance, and administration of the Interfund Billing System and other 

financial requirements for the DLMS. The Chairman, Finance PRC, in coordination with 

other Finance PRC members, is responsible for the contents of this volume of the 

DLMS. The identification of Finance PRC representatives, and other PRC related 

information, appears on the Finance PRC Webpage at 

www.dla.mil/j-6/dlmso/Programs/Committees/Finance/financeprc.asp. Refer to Volume 

1, Chapter 1 for a discussion of general DLMS PRC functions and responsibilities. 

C1.5. SUPPLEMENTAL PROCEDURES. Supplemental procedures issued by the DoD 

Components and participating Agencies are authorized when additional detailed 

instructions are required. The publications listed in Table C1.T.1 supplement the 

provisions of this volume within the DoD Components and participating Agencies: 

Table C1.T1. Supplemental Billing Procedures 

SERVICE or AGENCY SUPPLEMENTAL INSTRUCTIONS 

United States Army 

(USA) and United 

States Air Force 

(USAF) 

Defense Finance and Accounting Service (DFAS)-

Indianapolis Center (DFAS-IN) Regulation 37-1, Finance 

and Accounting Policy Implementation 

United States Navy 

(USN) or United States 

Marine Corps (USMC) 

NAVSO P-1000, Department of the Navy Financial 

Management Policy Manual 

General Services 

Administration (GSA) 

FPMR 101, Subchapter E, Subpart 101-26-8, 

Discrepancies or Deficiencies in GSA or DoD Shipments, 

Material or Billings 

FEDSTRIP Operating Guide 

C1.6. NONCOMPLIANCE. If reasonable attempts to obtain compliance with prescribed 

procedures or resolution of DLMS Finance related problems are unsatisfactory, the 

activity having the problem shall request assistance from its DLMS Finance PRC 

representative. The request shall include information and copies of all correspondence 

pertinent to the problem; including the document number, the number and date of the 

DLMS bill, and billing office. The representative shall take the necessary actions to 
DoD 4000.25-M, Volume 5, XXXX 2012 

C1-3 Enclosure (1), CHAPTER 1 

resolve the issue or problem. The actions may include requesting assistance from the 

Chairman. 

C1.7. SIMULATED MOBILIZATION EXERCISE 

 C1.7.1 When establishing plans that require simulated mobilization exercises, 

identify the associated transactions as simulated mobilization exercise transactions as 

provided for in the applicable implementation convention. The common mechanism in 

the DLMS Supplement is to set the Purpose Code of the beginning segment to 77–

Simulation Exercise. Do not process simulated mobilization transactions in the supply 

distribution system(s) as action documents that affect accountable/unit records. The 

DoD Component activities responsible for initiating these exercises must use extreme 

caution to ensure procedures are explicit and to coordinate with all participants. 

 C1.7.2. DLSS has reserved certain DIC series for use in mobilization or other 

exercises. Within the legacy DLSS, DIC H series transactions are reserved for use 

during simulated mobilization exercises in lieu of the normal F or G series DICs. 

Although not mandatory, exercise planners are encouraged to use the H series DIC. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-1 Enclosure (1), CHAPTER 2 

C2. CHAPTER 2 

BILLING PROCEDURES 

C2.1. CRITERIA FOR BILLING 

 C2.1.1. Shipments From Stock. Billing shall be effected on the basis of drop from 

inventory or performance of services. Exceptions are as follows: 

 C2.1.1.1. Security Assistance. Billings for security assistance shall be 

effected upon constructive delivery. 

 C2.1.1.2. Petroleum, Oil, and Lubricants (POL). Billings for bulk POL 

shipments may be billed after notification of receipt or 15 calendar days after the date of 

shipment or issue, whichever occurs first. 

 C2.1.1.3. Perishable Subsistence Chill and Freeze Items. Billings for 

perishable subsistence chill and freeze items shall be effected upon drop from 

inventory. Billings for fresh fruits and vegetables shall be effected upon receipt of an 

issue transaction from DLA Troop Support. 

 C2.1.1.4. Drawdowns 

 C2.1.1.4.1. Materiel requisitioned under authority of Section 506 of the 

Foreign Assistance Act, as amended (i.e. , when the Foreign Military Sales (FMS)/Grant 

Aid (GA) type of assistance code is C), may not be billed until funds are appropriated, 

with the exception of Working Capital Fund activities. Although Section 506 does not 

provide obligation or disbursing authority, it does permit the drawdown of existing DoD 

stocks subject to an appropriation to be made at a later date. Since there is no 

assurance that DoD accounts will be reimbursed, the transfers cannot be recorded as 

accounts receivable. Therefore, issues under Section 506 will be treated as transfers 

without reimbursement. The transfer without reimbursement will be reversed when 

appropriations are received to reimburse the DoD account for the transfer. Section 506 

draw downs of General Services Administration (GSA) or other non-DoD stocks are not 

authorized.1

 C2.1.1.4.2. All requests for Defense Working Capital Fund (DWCF) 

activities (to include transportation) shall include a funding source, allowing DWCF 

 

1

Section 552 of the Foreign Assistance Act of 1961 allows the President to "direct the drawdown of 

commodities and services from the inventory and resources of any agency of the United States 

Government”. Under DLMS, except for the use of DoD (Section 506) or any agency (Section 552) 

assets, drawdowns under both sections are identified and treated similarly.
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-2 Enclosure (1), CHAPTER 2 

activities to be reimbursed by the Military Departments without delay. Orders will not be 

accepted without a funding source. Refer to DoD 7000.14-R, “Department of Defense 

Financial Management Regulations (FMRS)”, Vol. 12, paragraph 230502 and Vol. 11B, 

paragraph 110106.A.). 

 C2.1.2. Direct Deliveries of Materiel From Contractors. When an inventory item is 

out of stock, is not carried, or has otherwise been requested via direct delivery of 

materiel from a vendor, the billing shall be effected upon notification of receipt of 

materiel by the customer or notification of shipment by the vendor. 

 C2.1.3. In-Storage Visibility Lateral Redistributions. When an Integrated Materiel 

Manager/Inventory Control Point (IMM/ICP) laterally redistributes materiel, 

reimbursement to the reporting activity and billing to the requisitioning activity shall be 

effected upon notification of receipt by the requisitioning activity. 

 C2.1.4. In-Storage Visibility Procurement Offset. When materiel is returned to the 

IMM/ICP to offset or preclude procurement, reimbursement to the returning activity is 

authorized upon receipt, inspection, and acceptance of materiel as evidenced by the 

IMM/ICP’s generation of a creditable Materiel Receipt Status. 

 C2.1.5. Customer Asset Report Credits. Materiel Return Program (MRP) credits 

are authorized upon receiving notification that materiel authorized for return under 

creditable procedures has been received in the offered condition and quantity. 

 C2.1.6. Materiel Services. Billings for services related to materiel shipments and 

returns not included in the materiel price are authorized after the services are rendered. 

C2.2. PREPARATION OF BILLS 

 C2.2.1. General. Bills shall be prepared within 30 calendar days of the criteria 

provided in section C2.2 and must identify each shipment, delivery, service performed, 

or refund earned. 

 C2.2.2. Materiel Billing And Credit Amounts. In general, billings for materiel shall 

be at the standard price in effect at the time of shipment, and credit adjustments 

(refunds) shall be at the price originally billed. Exceptions are identified in the following 

subparagraphs. Billings and credits for services or allowances related to materiel 

shipments shall be processed as prescribed by section C2.5. 

 C2.2.2.1. Lateral Redistribution Credits. Reimbursements for materiel 

laterally redistributed shall be processed at the standard price in effect at the time of 

shipment. Credits may be fully or partially reversed by the IMM/ICP when a validated 

discrepancy report documents the materiel was not shipped in a condition or quantity 

warranting full credit. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-3 Enclosure (1), CHAPTER 2 

 C2.2.2.2. In-Storage Visibility Procurement Offset and MRP Credits. Credits 

shall be processed at the acquisition cost in effect at the time of receipt. Credits may be 

lower if, in the opinion of the IMM/ICP, the received materiel is not in a condition and/or 

quantity to warrant full credit. 

 C2.2.2.3. Quality Deficiency Reports. When the original requisition number 

cannot be identified, the credits shall be at the current standard price. 

 C2.2.2.4. Materiel Returns to DLA from Industrial Sites under Base 

Realignment and Closure Retail Storage and Distribution/Inventory Management and 

Stock Positioning, and National Inventory Management Strategy2. A variation of the 

MRP program is used for processing materiel returns to DLA from selected sites in 

support of the Base Realignment and Closure (BRAC) Retail Storage and Distribution 

(SS&D)/Inventory Management and Stock Positioning (IMSP) and the National 

Inventory Management Strategy (NIMS). Standard MRP DLMS/MILSTRIP transactions 

do not apply. No credit for packaging, crating, handling, or transportation (PCH&T) shall 

be provided. 

 C2.2.2.4.1. Industrial Sites. DLA managed materiel returned by an 

industrial customer at BRAC industrial sites will be accepted into DLA inventory 

regardless of DLA wholesale asset stock position. Credit shall be processed based 

upon a receipt of the returned materiel corresponding to a sale to Service maintenance 

(identified by DoD Activity Address Code (DoDAAC) series/internal customer group) for 

the same materiel and condition completed within the 60-day period prior to the date on 

the return. Up to 100 percent credit shall be processed at the full selling price of the 

item on the original order(s) used as reference for return quantity less than or equal to 

the quantity on the reference order(s). DLMS/MILSBILLS Billing for Issue from Stock 

(DLMS 810L/DIC FA2) shall be used to provide credit under modified business rules. 

Credit for any quantity returned over the original amount, in a different condition code 

from the original sale or unmatched is subject to DLA ICP stock position using business 

rules equivalent to the MRP for determining whether to provide credit/credit amount 

contained in DoD 4140.01-R, “Supply Chain Materiel Management Regulation,” May 23, 

2003. The Service’s financial system will be notified of any resulting credit via a 

DLMS/MILSBILLS Materiel Returns Program Credit (DLMS 810L/DIC FD2). 

 C2.2.2.4.2. National Inventory Management Strategy Sites. Credit for 

materiel returns from a NIMS site customer will be processed based upon the return 

receipt. The DLA ICP shall process the receipt and determine whether a sale has 

occurred for the same materiel, condition code, and customer within a 60-day time 

frame reflecting the exact same document number as the receipt (return) document. If 

there is an exact matching sale, the customer shall receive credit equal to the original 

sale. Credit for any quantity returned over the original amount, in different condition 

 

2

 DLA is required to request approval of new procedures supporting BRAC/NIMS allowing full materiel 

credit for returns regardless of asset position with no credit for PCH&T. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-4 Enclosure (1), CHAPTER 2 

code from the original sale or unmatched is subject to credit/credit amount from 

C2.2.2.4.1. The Service’s financial system will be notified of any resulting credit via a 

DLMS/MILSBILLS Materiel Returns Program Credit (DLMS 810L/DIC FD2). 

 C2.2.3. Method of Billing 

 C2.2.3.1. Bills arising from transactions containing a National Stock Number 

(NSN) within the DoD will be collected through the Military Standard Billing System 

(MILBILLS) interfund billing procedures when supported by the supply and accounting 

systems. The provider will not accept a Military Interdepartmental Purchase Request 

(MIPR) if interfund can be used. Manual billing (e.g., the XP fund code) will not be used 

unless approved by the Deputy Chief Financial Officer. For intragovernmental interfund 

disputes, follow the dispute process outlined in Chapter 4.3 Billings to DoD offices must 

be under interfund procedures except as provided below. 

 C2.2.3.2. Billing shall be under noninterfund procedures when: 

 C2.2.3.2.1. The bill-to office is non-DoD (Bill-To Service Code is 

numeric, G, or Z). 

 C2.2.3.2.2. The bill-to office is a DoD contractor (Bill-To Service Code is 

C, E, HG, L, Q, SD, or U). 

 C2.2.3.2.3. The bill-to office is DoD (Bill-To Service Code is alpha other 

than C, E, G, HG, L, Q, SD, U, or Z) and the fund code requires noninterfund billing 

(normally XP fund code). 

 C2.2.3.2.4. The bill-to office is another-DoD Component (Bill-To Service 

Code is H) and the fund code is not identified as a valid fund code. 

 C2.2.3.2.5. The bill-to office is Army & Air Force Exchange Service 

(AAFES) (Bill-To Service Code is H followed by an X). 

 C2.2.3.2.6. DLA Transaction Services will reject bills when they fail any 

of the edits. See Chapter 6.2 for information about the routing and editing of bills 

processed through DLA Transaction Services. Rejected bills will be returned to the 

originating communications center with a narrative description indicating the reason for 

rejection. Billing offices will correct the rejected bills and resubmit them to the DLA 

Transaction Services. Billing offices will ensure that all appropriate adjustments for 

rejected billings and interfund collections are made to seller accounting records. 

 

3

 From DoD 7000.14-R, Volume 4, Chapter 3 Receivables, Paragraph 030504.B (November 2009) 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-5 Enclosure (1), CHAPTER 2 

 C2.2.3.3. Method of Billing Summary. Billing methods are summarized in 

Table C2.T1. 

Table C2.T1. Method of Billing 

Condition 

Number 

Billed DoDAAC 

Begins With: And Fund Code is: 

Then the Billing 

Method is: 

1 C, E, G, HG, 

HX, L, Q, SD, U, 

Z, or numeric 

Any NON 

INTERFUND 

2 Any Service 

code 

XP or otherwise 

designates 

noninterfund 

NON 

INTERFUND 

3 H Not identified as 

eligible for interfund 

billing 

NON 

INTERFUND 

4 Anything other 

than conditions 

described by 1, 

2, or 3 

 INTERFUND 

 C2.2.4. Determining Bill-To Parties 

 C2.2.4.1. Billed Party. Ordering activities shall identify a billed party 

DoDAAC for all requisitions or other orders, including nonreimbursable orders. 

 C2.2.4.2. Billed Party Not Identified. Item managers or other providers of 

goods and services shall reject requisitions or other orders when a valid billed party is 

not identified. In the event an order comes through without a valid bill-to party, billing 

offices will designate the ordering or submitting activity as the bill-to party if, for 

whatever reason, they are unable to identify a valid billed party. The Service Security 

Assistance Control Office shall be designated as the bill-to party for unidentifiable 

security assistance requisitions. The Service control offices are: Army–W25P02, 

Navy–N65916, and Air Force–FG2303. 

 C2.2.4.3. The mailing address for noninterfund bills shall be the clear text 

address prescribed for billing (TAC 3 if assigned; otherwise TAC 1) in the DoDAAD 

(DLM 4000.25, Defense Logistics Management System Manual, Volume 6, Chapter 2). 

The routing for interfund bills shall be based on the billing Communication Routing 

Identifier (COMMRI). 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-6 Enclosure (1), CHAPTER 2 

 C2.2.5. Nonreimbursable Bills. Materiel issued under nonreimbursable 

procedures must be reported to the billed office using the Notice of Nonreimbursable 

Issue (810L/DIC FE_). 

 C2.2.6. Interfund Bills 

 C2.2.6.1. Use of Interfund. If the bill is paid under interfund procedures, the 

billing office will report the collection to its servicing finance center on its seller interfund 

report. A separate interfund bill will be prepared for billings applicable to a bill-to 

DoDAAC and treasury symbol. 

 C2.2.6.2. An interfund bill consists of a Summary Billing Record (DS 810L, DI 

code FS_) and one or more detail billing records, but shall not contain more than 495 

records in total. Noninterfund records shall not be included on the same bill. 

 C2.2.6.3. Interfund bills are forwarded to DLA Transaction Services 

electronically for editing and further routing to the offices billed as described in Chapter 

6. Only billings routed by DLA Transaction Services shall be eligible for interfund 

collection as prescribed in Chapter 5. 

 C2.2.6.4. Separate detail billing records, selected from the Appendix 3 series 

appendices, shall be prepared for each shipment of delivery supporting the summary 

billing record. 

 C2.2.6.5. The fund code (see Appendix 2) provides procedures for 

converting fund codes to appropriations charged. 

 C2.2.6.6. A separate interfund (or noninterfund) bill shall be prepared: 

 C2.2.6.6.1 when the billed office DoDAAC or fund code changes, 

 C2.2.6.6.2. when the net amount of the bill (net amount of the detail 

billing records) equals or exceeds 10 million dollars, 

 C2.2.6.6.3. when the number of billing records (summary plus detail 

billing records) exceed 495 records, or 

 C2.2.6.6.4. when there are different Security Cooperation Customer 

Codes. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-7 Enclosure (1), CHAPTER 2 

 C2.2.6.7. The recommended standard for interfund bill numbers appears in 

Table C2.T2. 

Table C2.T2. Standard Interfund Bill Numbers 

If the Billing 

Month Is: 

The 1st 

Position of the

Bill Number 

Will Be: 

If the Billing 

Month Is: 

The 1st 

Position of the 

Bill Number 

Will Be: 

January A or B July N or P 

February C or D August Q or R 

March E or F September S or T 

April G or H October U or V 

May J or K November W or X 

June L or M December Y or Z 

The remaining four positions of the bill number will be alpha 

or numeric (characters A-Z or 0 or 9). The bill number shall 

be unique within the billing month. 

 C2.2.7. Noninterfund Bills 

 C2.2.7.1. When an activity is unable to use electronic data interchange (EDI) 

methods (i.e. DLMS 810L), it may use the SF 1080, “Voucher for Transfers between 

Appropriations and/or Funds,” or other form approved by the Treasury Department, 

such as GSA Form 789, “Statement, Voucher, and Schedule of Withdrawals and 

Credits” as the billing document for noninterfund bills. 

 C2.2.7.2. An original of the noninterfund billing shall be provided to the billed 

office. Noninterfund billings will, at a minimum, be supported by the following 

information4

: document order number, description of the article or services, delivery or 

other performance date, quantity, and price. The document order number and 

description will usually be satisfied by the requisition document number and NSN. The 

delivery or performance date is the same as the day of year prescribed for the detail 

billing record appropriate for the issue or service. 

 

4

 Though not required, to facilitate the resolution of billing or payment disputes involving noninterfund bills, 

billing offices should also include electronic contact information on the bill. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-8 Enclosure (1), CHAPTER 2 

 C2.2.7.3. Billing offices may, at their option and with the customer’s 

concurrence, provide automated support for noninterfund billings using the G series 

billing records. These billing records shall be transmitted electronically to DLA 

Transaction Services, which will pass the records to the billed office by the best means 

available. Hard copy billing documents are not required. 

C2.3. RETENTION OF BILLING RECORDS 

 C2.3.1. Billing offices must have accessibility to billing records for six years, three 

months after the month of the billing. Billing records include a copy of the bill and 

supporting records. 

 C2.3.2. Notwithstanding the requirements of C2.3.1, adjustment processing 

activities shall retain accessibility to billing records for whatever time period is required 

to enable them to process adjustments for requests or validated discrepancy reports 

when the request or report leading to the adjustment is received within prescribed 

timeframes. 

 C2.3.3. For security assistance, interfund bills are considered supporting 

execution documentation required to be maintained by the Implementing Agency in 

accordance with DoD 7000.14R, Volume 15, 0602.J.7. 

C2.4. CORRECTION OF ERRONEOUS BILLINGS 

 C2.4.1. Billing Forwarded To Customer. When a billing office finds it has issued 

an invoice containing one or more erroneous billing lines, it shall correct the erroneous 

billing line in a later invoice. Normally, billing offices are expected to reverse and 

reissue only the erroneous billing line, not the entire invoice. The corrections shall be 

processed as soon as practical and shall not await customer requests for adjustments. 

 C2.4.2. Billing Rejected By DLA Transaction Services. Billings rejected by DLA 

Transaction Services must be corrected and resubmitted to obtain reimbursement. 

Corrective procedures shall include the accounting records to maintain the audit trail 

and the validity of the records. For example, in-transit interfund collections and paid 

accounts receivables related to the rejected bills will have to be reversed. 

C2.5. CANCELLATIONS. When a provider accepts a customer's request to cancel a 

requisition or other order, any billings generated for that requisition shall be reversed in 

the next billing cycle. When the cancellation involves diverting materiel back to stock, 

the billing shall be reversed upon receipt of the materiel. Any charges related to the 

cancellation, such as contract termination costs, will be billed under noninterfund 

procedures. 

C2.6. BILLING FOR ACCESSORIAL AND ADMINISTRATIVE COSTS 

 C2.6.1. DoD Shipments 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-9 Enclosure (1), CHAPTER 2 

 C2.6.1.1. Purpose. Accessorial and administrative costs may be invoiced 

using either interfund or noninterfund reimbursement methods. However, in all cases, 

billing shall be accomplished in the same manner as the materiel. DoD 7000-14-R, 

Volume 6, provides the DoD policy for billing accessorial and administrative costs. 

 C2.6.1.2. Normal Charges. Unless otherwise indicated on ordering 

documents or transactions, accessorial costs incurred for supply items requisitioned by 

DoD Activities shall be charged to the same funds as the materiel. 

 C2.6.1.3. Retail Loss Allowance. DoD 7000.14-R, volume IIB, requires the 

DWCF to grant a discount for retail losses to retail stock funds based upon net issues 

after authorized credits or offsets have been applied. These discounts are to provide 

funds for losses experienced at the retail stock fund level. Retail loss discounts shall 

not be granted for sales to commissaries and customers of retail or installation level 

stock fund activities. However, retail loss discounts are authorized for all military 

clothing items sold to Military Exchanges. 

 C2.6.1.4. Packing, Crating, Handling, and Transportation 

 C2.6.1.4.1. Reimbursements for packing, crating, and handling costs for 

(a) IMM/ICP directed lateral redistributions, (b) IMM/ICP authorized MRP and sales 

returns, and (c) IMM/ICP directed procurement offset returns associated with In-Storage 

Visibility (ISV) shall be a percent of the materiel credit price. The rate shall be 3.5 

percent for consumable items and 1 percent for reparable items. Billing offices shall 

use the Accessorial and Other Miscellaneous Billings record format to support these 

billings and reimbursements. 

 C2.6.1.4.2. Reimbursements for transportation costs for (a) IMM/ICP 

directed lateral redistributions, (b) IMM/ICP authorized MRP and sales returns, and (c) 

IMM/ICP directed procurement offset returns associated with ISV shall be for an amount 

equal to the IMM/ICP’s cost recovery rate for second destination transportation included 

in the selling price of the materiel and shall be supported by a Billing for Transportation 

record format. 

 C2.6.1.4.3. Billing offices shall use the Accessorial and Other 

Miscellaneous Billings or other appropriate record to support billings and 

reimbursements for other authorized PCH&T, administrative, or accessorial charges. 

 C2.6.1.4.4. Reimbursement for packing, crating, handling, and 

transportation shall not be provided for materiel returns to DLA industrial sites under 

BRAC SS&D/IMSP, or NIMS sites5

. Refer to C2.2.2.4. 

 

5

 DLA is required to request approval of new procedures supporting BRAC/NIMS allowing full materiel 

credit for returns regardless of asset position with no credit for PCH&T. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-10 Enclosure (1), CHAPTER 2 

 C2.6.2. GSA Shipments 

 C2.6.2.1. General. GSA shall assess accessorial and administrative costs 

on shipments to the Department of Defense as indicated in this section. 

 C2.6.2.2. Transportation Charges 

 C2.6.2.2.1. Paid By GSA. GSA shall pay transportation charges on 

stock items to: 

 C2.6.2.2.1.1. Consignees in the CONUS, and, where scheduled, 

surface commercial transportation services are available in Hawaii, the Commonwealth 

of Puerto Rico, the Virgin Islands, the southeast peninsula of Alaska, central Alaska (rail 

belt), and Kodiak Island. 

 C2.6.2.2.1.2. A U.S. port of embarkation for overseas destinations 

not included in subparagraph C2.6.2.2.1.1. 

 C2.6.2.2.2. Paid By Customer. GSA shall not pay transportation 

charges for shipments of special order program (nonstock) items, purchased free on 

board (FOB) origin. GSA will, however, prepay and bill the agency as a separate item 

for: 

 C2.6.2.2.2.1. Transportation charges to a CONUS destination or a 

U.S. Port of Embarkation on F.O.B. origin items. 

 C2.6.2.2.2.2. Transportation charges from a CONUS destination or 

a U.S. Port of Embarkation to consignees in Hawaii, the Commonwealth of Puerto Rico, 

the Virgin Islands, the Southeast Peninsula of Alaska, Central Alaska (rail belt), and 

Kodiak Island. 

 C2.6.2.2.2.3. Transportation charges billed under interfund 

procedures shall be billed using the Accessorial and Other Miscellaneous Billings 

record. 

 C2.6.2.3. Export Charges 

 C2.6.2.3.1. Surcharge shall be assessed at the rate of 10 percent of the 

value of the materiel ordered and shipped to customers overseas from GSA wholesale 

distribution centers and vendors when unique DoD marking/packing requires the 

shipment be physically handled by a GSA export packing facility. The export surcharge 

shall be billed as follows: 

 C2.6.2.3.2. A flat fee of $5 administrative charge per requisition line 

shall be assessed for export shipments not physically handled by a GSA export packing 

facility. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-11 Enclosure (1), CHAPTER 2 

 C2.6.2.3.3. The export services performed on shipments for customers 

overseas may vary by customer location, commodity, mode of shipment, and other 

criteria and include: monitoring and expediting delivery to meet required delivery date; 

over packing and documenting dangerous/hazardous shipments; challenging air eligible 

shipments; unitizing, consolidating, and palletizing cargo; arranging for seavans to 

source load cargo and document shipments for delivery to ports of embarkation; and 

others. 

 C2.6.2.3.4. GSA shall annually review actual costs to perform export 

services and, as appropriate, propose changes in the above rate for use throughout 

each fiscal year. The Under Secretary of Defense (Comptroller) shall be advised 

sufficiently in advance for appropriate program and budget planning. 

C2.7. BILLING FOR PROGRESS AND ADVANCE PAYMENTS 

 C2.7.1. Progress Billings 

 C2.7.1.1. Purpose. Progress payments may be billed via interfund whenever 

the order received from the customer specifies that progress billings via interfund are 

authorized. Documentation of the agreement by the customer to allow progress billing 

via interfund may be used in lieu of a specific provision on each order. 

 C2.7.1.2. Billing Basis. Billings made for progress payments will be based 

upon documentary evidence of satisfactory performance and shall not exceed the 

amount of the customer order. 

 C2.7.1.3. Offsets. The billing office shall offset billing lines for deliveries 

against all outstanding progress billings related to those deliveries. Billing lines shall be 

reported for both the sales price of the shipment and the amount of the progress billing 

being liquidated. The billing method elected for the progress payment will also be the 

method used to invoice for the delivery. 

 C2.7.1.4. Multiple Progress Billings. Although multiple progress billings may 

have been submitted against an order, a single recoupment billing may be reported for 

the total amount of the progress billings. 

 C2.7.2. Advance Billings 

 C2.7.2.1. Applicability. Advance billings may not be billed via interfund. 

When authorized, advance funding will be satisfied via noninterfund and by the use of 

appropriation level, rather than project or order level, advances. 

 C2.7.2.2. Application of Advances. Received advances must be returned or 

applied to accounts receivable before the end of the fiscal year. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-12 Enclosure (1), CHAPTER 2 

C2.8. INTO-PLANE FUEL SALES 

 C2.8.1. Applicability. These procedures apply to DoD into-plane issues (sales) of 

fuels to DoD aircraft except when other billing procedures are specified by the terms of 

an inter-Service support agreement. 

 C2.8.2. Reimbursable Issues. Reimbursable issues (sales) of fuel into DoD 

planes by DoD activities shall be billed at the standard price in effect at the time of 

issue. 

 C2.8.3. Contractor Fuel Issues. Contractor into-plane fuel issues shall be billed at 

the standard price applicable to each such issue. 

 C2.8.4 DWCF Billing. Billing offices funded by the DWCF will grant credit for DoD 

aircraft defueling based on supply defueling slips at DWCF prices. 

 C2.8.5. Credits. Credits shall be given for contractor into-plane defueling of DoD 

aircraft based on a defueling slip at the standard price given for each defueling. 

 C2.8.6. Into-plane fuel bills shall use the Billing for Into-Plane Issues record 

format. 

C2.9. HAZARDOUS MATERIEL AND WASTE BILLINGS 

 C2.9.1. Users of DLA's hazardous materiel and waste disposal services shall 

provide DLA with a disposal turn-in document (DD Form 1348-1A, “Issue 

Releases/Receipt Document,” or 1348-2, “Issue Release/Receipt Document with 

Address Label”) as prescribed by DLM 4000.25. Since these services are provided on 

a reimbursable basis, the order will be funded in accordance with the standards 

prescribed by DoD 7000.14-R. The order will generally authorize DLA to use the 

interfund billing system to reimburse themselves for these services. 

 C2.9.2 General6

 C2.9.2.1. General policies and procedures governing hazardous materiels 

and waste disposal within the Department of Defense are prescribed by DoD 4160.21-

M, “Defense Materiel Disposition Manual,” August 19, 1997. DLA Disposition Services 

(formerly the Defense Reutilization and Marketing Service ) is authorized to bill for these 

services under interfund billing procedures and shall use the Billing For Decentralized, 

Noncatalogued, and Nonstocked Items billing record. 

 

6

 The “background” information in this subsection is provided to assist financial personnel in 

understanding their responsibilities with regard to hazardous waste and materiel disposal services. Any 

conflicts between information contained in this subsection and procedures prescribed by MILSTRIP or 

DoD 4160.21-M will be resolved by following MILSTRIP procedures. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-13 Enclosure (1), CHAPTER 2 

 C2.9.2.2. Requestors of services wanting to dispose of hazardous waste and 

materiel shall follow the procedures in DoD 4160.21-M and Chapters 3 and 5 of 

MILSTRIP DLM 4000.25-1. These procedures require preparation of a disposal turn-in 

document (DTID) in accordance with instructions prescribed by MILSTRIP7 and provide 

it to the DLA Disposition Services Field Office (formerly Defense Reutilization and 

Marketing Office (DRMO)). The DLA Disposition Services Field Office shall provide the 

generator with a receipt copy of the DTID at the time of turn-in. 

 C2.9.3. Hazardous Waste Disposal 

 C2.9.3.1. Hazardous waste disposal services are provided on a reimbursable 

basis and generators must, therefore, contact their servicing finance office to ensure 

that funds are obligated for these services. Prior to actual turn-in and disposal, the cost 

of hazardous waste disposal services may be estimated by referring to the contract 

governing the materiel being disposed of. The estimated cost of the disposal must be 

obligated under the DTID number. Contact the DLA Disposition Services Field Office 

for assistance in estimating the cost. 

 C.2.9.3.2. The DLA Disposition Services Field Office shall provide the 

generator with copies of the disposal manifest (DD Form 1155) and any modifications 

as the disposal request is executed and modifications are agreed to. The DLA 

Disposition Services Field Office shall also provide the generator with a certified copy of 

disposal for each DTID. Generators must advise their servicing finance office when 

estimated amounts obligated at the time of turn-in or execution are lower than actual 

amounts indicated on these documents. 

 C2.9.3.3. Establishing an obligation for the proper amount under the DTID 

document number is essential for the timely and automated processing of interfund 

charges. Failure to do so is a violation of financial management procedures and shall 

delay updating generator accounts and increase workload on both DFAS and generator 

personnel. 

 C2.9.4. Hazardous Materiel Disposal 

 C2.9.4.1. Unlike hazardous waste, disposal of hazardous materiel may not 

result in any charges to the generator. Therefore, unless you are certain you will incur 

disposal charges, generators should not obligate turn-ins of hazardous materiel. After 

receipt of the hazardous materiel DTID, the DLA Disposition Services Field Office must 

advise the generator if disposal costs that are the responsibility of the generator will be 

incurred. The following determines whether or not the generator shall be charged for 

disposal of hazardous materiel. 

 

7

 Appendix 3.49 Transfers To DLA Disposition Services Field Office on DD Form 1348-1a Issue 

Release/Receipt Document, or DD Form 1348-2, Issue Release/Receipt Documents With Address Label. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-14 Enclosure (1), CHAPTER 2 

 C2.9.4.2. There shall be no disposal costs charged to the generator if the 

DLA Disposition Services Field Office can dispose of the hazardous materiel through an 

existing contract or believes the materiel can be reutilized, transferred, donated or sold. 

 C2.9.4.2.1. DLA Disposition Services Field Offices shall provide the 

generator with a monthly Disposal Funding Status Report of the DTIDs that were 

successfully reutilized. 

 C2.9.4.2.2. Generators who have open hazardous materiel disposals in 

process shall contact the DLA Disposition Services Field Office if they fail to receive a 

monthly Disposal Funding Status Report. 

 C2.9.5. When the preceding condition does not apply, the hazardous materiel 

becomes hazardous waste, the disposal shall be on a reimbursable basis, and 

hazardous waste disposal procedures apply. Funding for this hazardous waste disposal 

must be provided to the DLA Disposition Services Field Office within 5 workdays of 

notification. The DLA Disposition Services Field Office must not proceed with the 

disposal of the now classified hazardous waste until funding is confirmed by the 

generator. 

C2.10. GENERAL SERVICES ADMINISTRATION UNIQUE BILLINGS 

 C2.10.1. Automotive Vehicles 

 C2.10.1.1. GSA is authorized to use the interfund billing system to invoice 

DoD activities for automotive vehicles purchased under a category one (reimbursable) 

MIPR. DoD activities submitting a MIPR must do so in accordance with paragraph 

8.7008 of the DoD Supplement to the Federal Acquisition Regulation, which requires 

activities to provide DLMS requisition data for each line-item to be delivered to each 

ship-to address. 

 C2.10.1.2. For purposes of identifying and validating charges, GSA shall 

support interfund billings for automotive vehicles with a single line item billing register. 

The register must show, in addition to the information shown on the billing record, the

full MIPR number under the columns headed "STOCK NUMBER.” 

 C2.10.2. GSA Customer Supply Center Billing Procedures 

 C2.10.2.1. GSA bills DoD customers for Customer Supply Center (CSC) 

billings using either a customer provided MILSTRIP document number or a constructed 

pseudo-document number. The document number is constructed from the ordering 

DoDAAC of the customer provided at the time the account was opened, the Julian day 

the order was placed, and the last four positions of the ticket number. GSA shall treat 

all line items requisitioned as a single order, with or without multiple line items, and bill 

for the order under the constructed document number if the customer doesn't provide a 

MILSTRIP document. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-15 Enclosure (1), CHAPTER 2 

 C2.10.2.2. GSA CSC interfund bills shall be supported by the GSA CSC 

Billing record. 

 C2.10.2.3. Noninterfund bills shall be supported by the Single Line Item 

Billing Register. The register must include the customer provided MILSTRIP document 

number in the stock number field. 

 C2.10.2.4. GSA offers its customers the option of having its CSC billings 

billed to a Government purchase card. Activities having difficulties with interfund or SF 

1080 billings of CSC supplies may want to consider this option. 

C2.11. ARMY EXCHANGE PRICING PROCESS 

 C2.11.1. The Army approach to the Exchange Pricing (EP) interim approach is a 

multi-system functionality implementation. EP employs a dual pricing system for a 

repairable NSN item based upon Standard Price (latest acquisition cost plus recovery 

rate) and EP (latest repair cost plus cost recovery rate) and a “buy one–return one” 

relationship with the customer (i.e., a qualified exchange pricing customer buys at the 

EP and pays a penalty if a reparable is not turned-in within a specified period of time 

from the issue date). This process is applicable to Army customers and Army-managed 

materiel only; other Services will continue to pay Standard Price and receive 65 percent 

credit exchange upon receipt of carcass by the Army Primary Inventory Control Activity 

(PICA). 

 C2.11.2. Once an item of supply is identified for a national repair program and the 

National Item Identification Number (NIIN) has an established Exchange Price, all 

requisitions for the items will be priced at the Exchange Price if the customer is an 

authorized EP customer. 

 C2.11.3. When a requisition submitted to the Supply Support Activity (SSA) is 

processed by the Standard Army Retail Supply System (SARSS), SARSS will 

determine if both the customer DoDAAC is an EP customer, and the NIIN has an 

established EP indicator. As this transaction is processed through the Army supply 

system, middleware, Funds Control Module (including EP Tracking) Defense Automatic 

Addressing System (DAAS), Commodity Control Supply System (CCSS), and Army 

Logistics Modernization Program (LMP), the EP indicator will be used to identify the 

transaction as EP related. All the legacy systems will continue processing the MILS 

transactions; LMP will process DLMS transactions that are converted by DLA 

Transaction Services. 

 C2.11.4. All related supply transactions prepared by the Army will carry and 

perpetuate the EP Indicator. The following transactions will be impacted as a result of 

the EP implementation: Requisition; Requisition Modifier; Requisition Follow-up; 

Materiel Release Order; and Supply Status. The returns process will also process EP 

related transactions. The Materiel Receipt transaction will be generated by SARSS for 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-16 Enclosure (1), CHAPTER 2 

all returns of EP NIINs, and will include an EP Type of Credit indicator for Unserviceable 

credit when applicable and an EP Conversion Indicator to identify the need to provide 

credit according to the pre EP credit policy, which will last for 60 calendar days following 

EP implementation. 

 C2.11.5. If the return has an un-repairable condition code or the item is not 

returned within the established timeframe (Delta Delay Days), the national level systems 

(LMP, CCSS) will create an obligation adjustment based on the receipt from Middleware 

Funds Control Module of a Materiel Returns Supply Status (Delta Bill Trigger) 

transaction. As a result of processing the delta bill trigger the national systems will 

create the logistics/interfund bill transaction with an EP Indicator and Type Bill code to 

identify the specific type of EP bill to the Army financial system. 

C2.12. NAVY EXCHANGE PRICING PROCESS 

 C2.12.1. The Navy uses a two tier pricing system for selling Depot Level 

Repairable (DLR) materiel to Navy customers. The Navy sells DLRs to other Services 

at full (standard) price and then provides carcass value credit when the carcass is 

returned. This is the same method the Air Force and Army use when selling repairable 

items to the Navy. The Standard Price is the price representing the full value of the 

DLR item, and is the price charged when a Not Ready For Issue (NRFI) unit (also 

referred to as a ‘Carcass’) is not turned in. The Net Price (also referred to as Exchange 

Price) is the price that includes the cost of repairing a DLR item, and is the price 

charged to customers when a NRFI unit has been or will be turned in. Navy customers 

indicate on their requisitions whether a NRFI unit is available for turn in via the Advice 

Code, and they are then charged Net or Standard Price accordingly. 

 C2.12.2. Received requisitions indicating that a carcass will be returned are 

tracked in the Navy’s Carcass Tracking System. This system monitors these 

requisitions and matches them with carcass returns as they occur. This system also 

generates follow ups to customers who have not returned their carcasses as promised. 

Ultimately, the system will trigger an additional charge to the customer if the carcass is 

not returned. Navy uses the term “Carcass Charge” for this additional billing, which 

represents the difference in value between Standard Price and Net (Exchange) Price. 

This additional billing is also referred to as a Delta Bill. If the customer returns the 

carcass after receiving the Carcass (Delta) Bill, then the additional billing is reversed, 

resulting in a Carcass Charge Reversal (Credit Delta Bill). Navy customers may also 

return excess DLRs for credit. The credit can be Standard, Net, or Carcass value. 

 C2.12.3. Under legacy format Defense Logistics Standard Systems 

(DLSS)/MILSBILLS billing, the Navy ICPs use the Sales Price Condition Code to 

indicate to customers that a bill is either Net (Exchange) Price or Carcass (Delta) Price. 

Once operational, the Navy’s ERP will replace the Navy ICP’s DLSS/MILSBILLS billing 

system with a DLMS based system. Since DLMS does not utilize a Sales Price 

Condition Code, Navy will use a combination of Stock Exchange Code and Type of Bill 
DoD 4000.25-M, Volume 5, XXXX 2012 

C2-17 Enclosure (1), CHAPTER 2 

Code to indicate on the bill whether the price charged is Standard, Net, or Carcass 

price. DAAS will convert Navy bills back to DLSS/MILSBILLS format for any Navy 

customers unable to accept DLMS formats. 

C2.13. INCLUSION OF TRANSPORTATION CONTROL NUMBERS ON DLMS 

LOGISTICS BILLS. Suppliers may bill on partial shipments with identical quantities 

under the same document number, which makes the bills appear as duplicates. 

Including the Transportation Control Number (TCN) on the DLMS Logistics Bill will 

resolve that problem. Partial shipment codes are part of the TCN structure in 

accordance with DTR 4500.9-R, “Defense Transportation Regulation”. Accordingly, 

reporting activities shall include the TCN in DLMS Logistics Bill transactions. This is a 

DLMS enhancement, which may be implemented without prior authorization. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C3-1 Enclosure (1), CHAPTER 3 

C3. CHAPTER 3 

PROCESSING AND PAYMENT OF BILLS 

C3.1. PAYMENT OF NONINTERFUND BILLS 

 C3.1.1. Payments made to other Federal Agencies are due upon receipt and 

shall be paid in full. The following exceptions apply: 

 C3.1.1.1. Bills for issues to North Atlantic Treaty Organization (NATO) 

(Supreme Headquarters Allied Powers Europe (SHAPE)) (identified by billed office 

Department of Defense Activity Address Code (DoDAAC) WM1Q7K) are due 120 

calendar days after the billed date. 

 C3.1.1.2. Bills for issues to United Nations (UN) Peacekeeping Forces 

(identified by billed office DoDAAC WN7GX8) are due 120 calendar days after the billed 

date. 

 C3.1.2. When the appropriations to be reimbursed and disbursed are both within 

the Department of Defense, bills may be paid either by check or through cross 

disbursing (no check) procedures. Payments involving appropriations outside the 

Department of Defense shall be by check. 

 C3.1.3. All remittances must include either the bill number or a copy of the bill. 

C3.2. PROCESSING INTERFUND BILLS. Interfund bills are notices of disbursement 

of billed office funds by the billing office. Accordingly, billed offices shall take prompt 

action to record and clear the in-transit disbursement. 

C3.3. ADJUSTMENTS 

 C3.3.1. Billed offices shall review all charges to ensure that billed items were 

ordered and that obligations are adjusted when appropriate. All requests for billing 

adjustments shall be prepared in accordance with Chapter 4. 

 C3.3.1. Billed offices shall review all charges to ensure that billed items were 

ordered and that obligations are adjusted when appropriate. All credits shall be 

reviewed to ensure that they are warranted and correct. Billed offices shall request 

adjustments for erroneous charges or credits in accordance with Chapter 4. 

 C3.3.2. Billing or other discrepancies that do not meet the criteria for requesting 

adjustment, described in Chapter 4, shall be recorded as obligations, funds disbursed, 

and expenses. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-1 Enclosure (1), CHAPTER 4 

C4. CHAPTER 4 

ADJUSTMENT PROCEDURES 

C4.1. REQUESTING ADJUSTMENTS 

 C4.1.1. Submission of Adjustment Requests 

 C4.1.1.1. Unless otherwise indicated in this chapter, requests for adjustment, 

follow-ups, and replies shall be submitted by electronic means. 

 C4.1.1.2. Requests are generally prepared using the Request for Billing 

Adjustment (DLMS 812R, DIC FAE) record. However, into-plane and bulk fuel related 

adjustment requests must use the Request For Adjustment of Fuel Billing (DLMS 812 R, 

DIC FJE). Refer to other Chapter 4 sections for more specific information on preparing 

requests for adjustments and follow-ups. 

 C4.1.1.3. Requests for adjustments will normally indicate the billing office as 

the addressee and shall be submitted to DLA Transaction Services for processing and 

routing to the billing office. Requests for adjustments of GSA billings shall be 

addressed to the GSA National Customer Service Center (DoD Activity Address Code 

(DoDAAC) 476437, RI code GSA). Correspondence to the Service Center, if 

necessary, may be directed to: 

 General Services Administration 

 National Customer Service Center 

 1500 East Bannister Road 

 Kansas City, Missouri 64131-3087 

 Telephone: (800) 488-3111 (DSN) 465-1416 

 C4.1.2. Nonreimbursable. Forward a request for adjustment in the format 

prescribed for billing account code (BAC) 14 when the coding of the requisition indicates 

that the materiel was requisitioned under nonreimbursable procedures and a materiel 

billing was received. 

 C4.1.3. Accessorial. A request for adjustment in the format prescribed for BAC 15 

shall be forwarded whenever accessorial costs are charged and the charges are not 

authorized. 

 C4.1.4. Timeframes. All requests for adjustments should be submitted within 30 

calendar days of receipt of the billing. Initial requests for adjustment received after the 

record retention period for billing records may be denied. When a discrepancy report or 

adjustment request is received within prescribed timeframes, nonavailability of records, 

or the passing of the record by the time the report is validated or the request is 

processed, may not be used as a basis for denying the adjustment. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-2 Enclosure (1), CHAPTER 4 

 C4.1.5. Minimum Value 

 C4.1.5.1. Adjustment for Billing Errors. In general, no request for adjustment 

should be submitted for billing errors when the amount of the error is $250 or less. As 

an exception to the general guideline, no request for adjustment should be submitted for 

billing errors when the amount of the error is $100 or less and the billing office is GSA or 

the materiel involved is a subsistence item. 

 C4.1.5.2. Adjustment Types. There is no minimum value for requesting 

status on an anticipated or required billing, requesting a corrected bill when the received 

bill is incomplete, requesting a copy of a bill, requesting a change in the type of billing 

(interfund to noninterfund and noninterfund to interfund), or requesting adjustments for 

validated discrepancy reports. 

 C4.1.5.3. Foreign Military Sales Billing Errors. There is no minimum value for 

adjustment of foreign military sales (FMS) billing errors. However, adjustment requests 

for FMS shipments may not be submitted when the request can be rejected per the 

general conditions of the U.S. Department of Defense Letter of Offer and Acceptance. 

C4.2. CANCELING OR AMENDING REQUESTS FOR ADJUSTMENT 

 C4.2.1. Canceling Requests. Submitting offices may cancel requests for 

adjustments whenever the request is no longer valid or appropriate and the billing office 

has not provided a final reply to the request. 

 C4.2.2. Amendments. Requests for adjustments may be amended by canceling 

the original request and submitting a new request. 

C4.3. FOLLOW-UP ON UNANSWERED REQUESTS FOR ADJUSTMENT 

 C4.3.1. Adjustment Requests. Except for follow-ups to DLA Transaction Services, 

offices submitting adjustment requests will follow-up on requests for adjustments 

remaining unanswered for more than 14 calendar days after submission. If the request 

for adjustment remains unanswered for more than 14 calendar days after follow-up, 

submitting offices will forward a second and final follow-up by letter or message to the 

billing office. In addition to providing the billing office with the information required to 

process the request, the final follow-up will identify the dates of initial and follow-up 

request. 

 C4.3.1.1. Follow the procedures prescribed for noncompliance and other 

problems (see Chapter 1) when requests for adjustments or requests for MRP credits 

remain unanswered for more than 30 calendar days after the second follow-up or if an 

interim response was received and the promised date has passed. 

 C4.3.1.2. Follow up to DLA Transaction Services (daashelp@dla.mil) for 

copies of interfund bills that were requested but not received. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-3 Enclosure (1), CHAPTER 4 

 C4.3.2. Credit Follow-Up. Offices designated to receive Materiel Returns Program 

(MRP) credit will initially follow-up on the credit due when the credit has not been 

received and more than 30 calendar days have elapsed since the creditable status was 

received. A second follow-up will be submitted if a reply or credit is not received within 

30 calendar days of the initial follow-up. 

C4.4. REPLYING TO REQUESTS FOR ADJUSTMENT OR MATERIEL RETURNS 

PROGRAM CREDIT 

 C4.4.1. Processing Adjustments. Billing or adjustment processing offices will reply 

to adjustment requests using Defense Logistics Management System (DLMS) 812L, 

Adjustment Request Reply transaction. The DLMS Supplement will also be used to 

reply to follow-up requests. 

 C4.4.2. Responding to Requests. Billing offices shall respond to all requests for 

adjustment within 13 calendar days of the date the request is received. Billing offices 

shall respond to follow-up requests for adjustment within 13 calendar days of the date 

the request is submitted. Replies to adjustment requests (DLMS 812L, Document 

Identifier Code (DIC) FAR) and follow-ups (DLMS 812L, DIC FAS) are required and 

shall also be forwarded to DLA Transaction Services for processing and further routing 

to the adjustment requestor. As with the requests, fuel-related replies shall follow the 

equivalent DIC FJ_ series formats. All adjustment replies shall include an appropriate 

coded reply. 

 C4.4.2.1. Responses to adjustment requests shall be forwarded to the office 

designated by the recipient of billing status code. Adjustments shall be forwarded to the 

original billed office. 

 C4.4.2.2. Billing offices shall respond to initial requests and first follow-up for 

MRP credit in the DLMS 812L, DIC FTB format. Responses shall be forwarded, via 

DSN, to the office designated by the materiel receipt status (870M, DIC FTZ). 

 C4.4.2.3. Billing offices shall respond to second follow-up requests for 

adjustments and MRP credit within 30 calendar days of receipt. If the request cannot 

be answered within 30 calendar days, an interim response by letter or message will be 

provided. The response must be completed within 60 calendar days. 

C4.5. ADJUSTMENT AMOUNT. In general, adjustments, when warranted, will be at 

the originally billed price. Adjustments for validated product quality deficiency reports 

(PQDRs) will be processed at the current standard price when the original billed price 

cannot be determined. Adjustments for Materiel Returns Program (MRP) credits will be 

at the current acquisition price or at a reduced price if, in the opinion of the Integrated 

Materiel Manager (IMM), the condition warrants such reduction. 

C4.6. INCOMPLETE OR UNSUPPORTED BILL 

 C4.6.1. An incomplete bill is one in which the interfund or noninterfund bill is not 

fully supported by detail billing records or information, respectively. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-4 Enclosure (1), CHAPTER 4 

 C4.6.2. Since DLA Transaction Services will not pass incomplete interfund bills to 

billed offices and billing offices will not be reimbursed for bills not submitted to DLA 

Transaction Services, a copy of the “incomplete” interfund bill shall be requested from 

DLA Transaction Services. 

 C4.6.3. Requests for incomplete (i.e., unsupported) noninterfund bills shall be 

addressed to the billing office and must cite BAC 19. In addition to responding to the 

request, whenever the bill referred to is on file, billing offices must always provide a fully 

supported copy or corrected bill to the billed office. 

C4.7. BILLING STATUS PROCEDURES 

 C4.7.1. Obtaining Bill Status. When requisitioned materiel is received, intended 

billed offices must use an Adjustment Request (DLMS 812R, DIC FAE) to seek the 

status of the bill. When materiel was not ordered, or if ordered and not received, 

discrepancy report procedures apply. See DLMS Volume 2, Chapter 17 and DoD 

4500.9-R, Defense Transportation Regulation, Volume 2, Chapter 210 for discrepancy 

report procedures. 

 C4.7.2. Shipment Bill Status. When shipment status is received for requisitioned 

materiel and the materiel can be billed only upon evidence of constructive delivery, 

intended billed offices must use an Adjustment Request (DLMS 812R, DIC FAE) citing 

BAC 35 to seek the status of the bill. Billing offices may generate the required billing 

when properly completed requests are received and a billing is awaiting evidence of 

constructive delivery. Billing offices will also initiate appropriate actions with their supply 

office to identify and resolve problems underlying this condition. 

 C4.7.3. Timeframe. At least 90 calendar days must have elapsed after receiving 

the materiel or, in the case of FMS shipments, shipment status before requesting the bill 

status. However, the status must be requested within a year of the shipment date (2 

years for FMS shipments). Billing offices may reject requests for billing status that are 

not submitted within these timeframes. 

 C4.7.4. When the billing status request involves fuels and is forwarded to DLA 

Energy (RIC S9F), the request shall be mailed and must identify the supply source. If 

the supply source is a DLA Energy regional location, provide the location’s DoDAAC. If 

the supply source is a contractor, including contractor Into-plane, provide the contract 

number. 

 C4.7.5. Restrictions. Except for billings awaiting evidence of shipment or receipt, 

billing offices will not generate bills based solely upon a request for billing status. 

 C4.7.6. DoD 7000.14-R, Department of Defense Financial Management 

Regulations (FMRS), Volume 10 has allowances for writing off unbilled liabilities and deobligating the related obligation when an invoice has not been received within 180 

calendar days from the date of acceptable final performance and there is documentation 

on file that at least two written requests for an invoice have been made. Refer to the 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-5 Enclosure (1), CHAPTER 4 

reference for other conditions that must be met, such as establishing a reserve for late 

bills. 

C4.8. BILL COPY PROCEDURES 

 C4.8.1. Requesting Copies. Requests for copies of interfund bills shall be 

addressed to DLA Transaction Services if the DLA Transaction Services record 

retention period has not expired. Requests must use the Request for Retransmission of 

Interfund Bill (DLMS 812R ,DIC QB1) format. See Chapter 6 for DLA Transaction 

Services record retention requirements and options for retrieving bill copies. 

 C4.8.2. Retransmitting Copies. DLA Transaction Services will retransmit copies of 

all bills wherein the billing office DoDAAC, bill number, and year within decade and 

month of credit match the same information on the request. 

 C4.8.3. Copies of Noninterfund Bills. Requests for copies of noninterfund bills will 

normally be addressed to the billing office. 

C4.9. REQUESTS FOR CHANGE IN BILLING METHOD 

 C4.9.1. Change in Billing Method 

 C4.9.1.1. When billing offices bill under interfund procedures and MILSBILLS 

procedures do not allow for such billing, billed offices will forward requests for 

adjustment in the format prescribed for BAC 52. 

 C4.9.1.2. When MILSBILLS procedures prescribe billing under interfund 

procedures, billing offices shall deny requests for improperly billed interfund. 

 C4.9.1.3. When the requisition or customer asset report improperly 

designates interfund billing and the interfund billing cannot be processed, refer to the 

following subparagraph for requesting rebilling under noninterfund procedures. 

 C4.9.2. Properly Billed Interfund to Noninterfund 

 C4.9.2.1. When a billed office is unable to process a billing record under 

interfund procedures, the billed office may have the item or items billed under 

noninterfund procedures by forwarding a request for billing adjustment citing BAC 51. 

Use of this advice code is an admission by the billed office that the requisition or other 

document was incorrectly coded. 

 C4.9.2.2. Requests citing BAC 51 may be submitted only when the funds or 

charge cannot be disbursed or processed under interfund procedures. All such 

requests shall be honored by the billing office; the billing office may challenge this 

assertion. 

C4.10. ADJUSTMENTS FOR DISCREPANCY REPORTS 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-6 Enclosure (1), CHAPTER 4 

 C4.10.1. Financial Adjustment 

 C4.10.1.1. Discrepancy reports shall be submitted, reviewed, processed, 

validated, and responded to in accordance with the procedures described in the 

requirements in Table C4.T1. 

Table C4.T1. Adjustments to Discrepancy Reports 

Reporting of Transportation Discrepancies in Shipments DTR 4500.9-R

"Defense Transportation Regulation” 

Supply Discrepancy Reporting, DLM 4000.25, Chapter 17

Product Quality Deficiency Program, DLAR 4155.24/AR 702-

7/SECNAVINST4855.5A/AFR 74-6

 C4.10.1.2. Billing offices shall process financial adjustments or claims citing 

the applicable Type of Bill Code (QD, WP, WU, or TD) based on the discrepancy report 

when the discrepancy report is validated and all of the following MILSBILLS or GSA 

criteria are met: 

 C4.10.1.2.1. Discrepancy Not Otherwise Resolved. The discrepancy 

was not resolved otherwise; for example, the vendor does not replace deficient materiel 

for a validated PQDR. 

 C4.10.1.2.2. Materiel Billed and Paid. The materiel was billed and paid 

previously or, in the case of reporting on a constructed document number, there is a 

reasonable basis for assuming that the items were previously billed and paid. 

 C4.10.1.2.3. Materiel Returned. The materiel is received by the depot in 

those cases where the discrepancy report reply requires the return. 

 C4.10.1.3. The discrepancy involves GSA shipments and the Transportation 

Discrepancy Report (TDR) exceeds $25 per line (detail billing record) (DBR) or the 

Supply Discrepancy Report (SDR) exceeds $50 per line (DBR). There is no minimum 

adjustment level on PQDRs involving GSA shipments. There are no adjustment dollar 

value limitations for discrepancies involving DoD shipments. 

 C4.10.1.4. The original MILSTRIP requisition number is included on the 

PQDR or SDR. When the original requisition number cannot be identified, the 

originating or screening point must include a constructed 14 position MILSTRIP 

document number using the originating or screening point’s DoDAAC for the first six 

characters, the current Julian date (YDDD) for the next four positions, and a four 

position serial number beginning with “U” as the first position of the serial number. An 

example of a constructed document number is F123453175 U001. Also carried as a 

utilization code under DLMS. Note: For SDRs, circumstances authorizing the use of a 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-7 Enclosure (1), CHAPTER 4 

constructed document number are restricted to those described in DLMS, Volume 2, 

Chapter 17. 

 C4.10.1.5. The discrepancy report for a GSA shipment is received by GSA, 

except when extenuating circumstances or high dollar values warrant special 

consideration, within the following timeframes: 

 C4.10.1.5.1. Within 1 year of the shipment date for PQDRs except: 

 C4.10.1.5.1.1. For items under warranty that must be received 

within the time limits prescribed in the individual warranty. 

 C4.10.1.5.1.2. For shelf life items that must be received prior to the 

expiration of the shelf life period and within 1 year of the shipment date. 

 C4.10.1.5.2. Within 180 calendar days of the shipment date for other 

than quality deficiencies except for: 

 C4.10.1.5.2.1. Shipments for security assistance consignees that 

must be received within 18 months of the shipment date; and 

 C4.10.1.5.2.2. Shipments to consignees located in the CONUS, 

Hawaii, the Commonwealth of Puerto Rico, the Virgin Islands, the southeast peninsula 

of Alaska, central Alaska (rail belt), and Kodiak Island that must be received within 120 

calendar days of the shipment date. 

 C4.10.1.6. Improper Commitment. When a reply to a discrepancy report 

improperly commits the billing office to providing an adjustment (e.g., the shipment was 

never billed), the billing office will ask the replying office to correct the reply to the 

discrepancy report. 

 C4.10.2. Other Discrepancy Adjustment Rules 

 C4.10.2.1. Adjusting Discrepancy Reports. Requests for adjustments related 

to TDRs will be submitted only when the adjustment is not received and more than 60 

calendar days have elapsed since the report was filed. Requests related to PQDRs and 

SDRs should be timely, but shall not be submitted until a minimum of 60 calendar days 

have elapsed since receiving notification that the discrepancy is validated (i.e., that an 

adjustment is approved). When the promised adjustment for a discrepancy is 

contingent upon the return of materiel, the request shall not be submitted until a 

minimum of 60 calendar days have elapsed since shipping the materiel with additional 

allowance for transportation time to the shipping activity. When a reply to a discrepancy 

report is not received, follow up as prescribed by DLMS Volume 2, Chapter 17. 

 C4.10.2.3. The portion of credits for materiel laterally redistributed may be 

fully or partially reversed by the IMM when a discrepancy report documents the materiel 

was not shipped in a condition warranting full credit. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-8 Enclosure (1), CHAPTER 4 

 C4.10.2.4. Activities responsible for discrepant shipments may be held 

responsible for costs incurred for repackaging, disposal, unauthorized returns, deficient 

packaging, and other item and packaging discrepancies that have been documented 

and validated under SDR procedures. Although other mutually agreeable arrangements 

may be made, such costs shall normally be recovered under noninterfund procedures 

and will be supported by the validated discrepancy report. In addition, when such 

returns are creditable, these discrepancy costs may be offset against the credit to which 

the returning activity is otherwise entitled. 

 C4.10.2.5. Adjustments based upon PQDRs shall be forwarded to the code 

and bill-to DoDAAC indicated on the PQDR. If omitted, adjustments shall be sent to the 

DoDAAC indicated (TAC 3, or TAC 1 if no TAC 3 exists) of the requisition number 

provided on the PQDR and the fund codes in Table C4.T2. 

Table C4.T2. Default PQDR Fund Codes 

BILLED SERVICE CODE FUND CODE 

N, P, R, or V (Navy) 96 

All Others QD 

C4.11. ADJUSTMENTS FOR BILLING ERRORS 

 C4.11.1. The following are billing errors and shall not be accepted for processing 

unless the minimum value criterion (Section 4.1) for requesting adjustment is met: 

 C4.11.1.1. Duplicates 

 C4.11.1.2. Wrong amount billed 

 C4.11.1.3. Wrong office billed 

 C4.11.1.4. Improper billed 

 C4.11.1.5. Promised adjustment not received 

 C4.11.1.6. Other problems 

 C4.11.2. Duplicates 

 C4.11.2.1. Duplicate Billing Line 

 C4.11.2.1.1. A duplicate billing line is a second or later billing for a 

single shipment or adjustment. If the second or later billing resulted from a second or 

later shipment, financial adjustment procedures do not apply. See, instead, discrepancy 

report procedures for duplicate shipments in DLMS Volume 2, Chapter 17. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-9 Enclosure (1), CHAPTER 4 

 C4.11.2.1.2. To obtain adjustment for duplicate detail billing records not 

previously adjusted by the billing office, submit a separate request for each duplicated 

billing record in the format prescribed for BAC 11. 

 C4.11.2.2. Duplicate Bill 

 C4.11.2.2.1. This is an interfund or noninterfund bill (SF 1080 or 

equivalent), that is supported entirely by duplicate detail billing records. In the case of 

interfund bills, the bill is also included on the billing office’s interfund report. 

 C4.11.2.2.2. Adjustments for duplicate interfund bills may be requested 

only upon confirmation that the bills (original and duplicate) were, in fact, reported to the 

buying service’s Central Accounts Office (CAO). To obtain an adjustment, submit a 

Request For Summary Level Billing Adjustment (DLMS 812R, DIC FDE) for each 

duplicated bill citing: 

 C4.11.2.2.2.1. BAC 42 when the bill, details and summary are 

identical, including the bill number, to a previous bill, 

 C4.11.2.2.2.2. BAC 43 when, except for the bill number, the bill 

details and summary are identical to a previous bill, and 

 C4.11.2.2.2.3. BAC 44 when all of the supporting detail billing 

records of one bill have been included on another bill. The bill containing such 

previously billed DBRs is the duplicate bill. 

 C4.11.3. Wrong Amount Billed 

 C4.11.3.1. Purpose. A wrong amount billed refers to a billing line in which 

the unit price, quantity, or price extension is erroneous. 

 C4.11.3.2. Exceptions. Do not request adjustment for wrong amount if: 

 C4.11.3.2.1. The unit price is the correct standard or catalog price and 

you are questioning the price. Follow price challenge procedures instead. 

 C4.11.3.2.2. The extension does not agree with the amount billed and 

Sales Price Condition code B is indicated. In this case, the unit price shown on the 

billing record is the inventory carrying value, the standard unit price. The billing unit 

price, if needed, must be computed. 

 C4.11.3.2.3. The quantity billed equals the quantity ordered or shipped 

and a lesser quantity is received. Follow the appropriate DLMS Volume 2, Chapter 17 

discrepancy reporting procedure instead. 

 C4.11.4. Wrong Office Billed 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-10 Enclosure (1), CHAPTER 4 

 C4.11.4.1. Request. Request an adjustment for wrong office billed when the 

office billed does not agree with the coded requirements of the requisition or adjustment 

request and the coding indicated a valid billed office DoDAAC. A valid billed office 

DoDAAC is one listed in the DoD Activity Address Directory (DoDAAD) with the proper 

authority code (See Chapter 6, C6.2.2.1.2 of this volume). 

 C4.11.4.2. Request Denial. When the billing was prepared in accordance 

with the requisition or modification received by the Inventory Control Point/Integrated 

Materiel Manager (ICP/IMM), the request shall be denied. 

 C4.11.4.3. Wrong Office Assigned. When the billing office assigned the 

billed office as prescribed in Chapter 2 and the office assigned is not the intended office, 

the billed office will transfer or otherwise process the bill in accordance with procedures 

prescribed by the DoD Component. If the offices involved are serviced by the same 

finance center, the billed office shall contact the intended billed office or requisitioner 

and make arrangements for transferring the bill. 

 C4.11.5. Improper Billing 

 C4.11.5.1. General. A DLMS 812R, Adjustment Request citing the proper 

billing advice code should be submitted to billing offices to request adjustments for 

improper billings. For purposes of this section, an improper billing is a billing line which: 

 C4.11.5.1.1. Charges for materiel requisitioned under nonreimbursable 

procedures; 

 C4.11.5.1.2. Charges improperly for accessorial costs; 

 C4.11.5.1.3. Charges for materiel following a reply that a billing could 

not be rendered; or 

 C4.11.5.1.4. Charges for materiel confirmed cancelled when the 

materiel is not received. 

 C4.11.5.2. Cancelled. When a billing for materiel is received on a requisition 

that was confirmed cancelled by the ICP or IMM and the materiel is not received, a 

request for adjustment in the format prescribed for BAC 17 shall be forwarded to the 

billing office. When the materiel was received or if the requisition was not confirmed 

cancelled by the ICP or IMM, MILSBILLS procedures do not apply. Follow instead 

procedures prescribed for reporting SDRs. Although annotations on a shipping 

document, in conjunction with other factors, may support a discrepancy report, they do 

not support an adjustment for improper billing. A validated discrepancy report is 

needed. 

 C4.11.5.3. Backordered. A request for adjustment in the format prescribed 

for BAC 18 shall be forwarded to the billing office whenever a billing is received on a 

requisition that was backordered and the receipt of the billing status, confirming that the 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-11 Enclosure (1), CHAPTER 4 

materiel was not received. Do not submit requests citing BAC 18 prior to obtaining this 

status. 

 C4.11.5.4. Billing Cannot Be Rendered. Billed offices shall request 

adjustment in the format prescribed for BAC 20 whenever the billing office issues a bill 

after advising, in a response to a request for billing status (Billing Status Codes DC and 

DF), that a bill could not be rendered. 

 C4.11.6. Promised Adjustment Not Received. Billed offices shall forward an 

Adjustment Request (DLMS 812R, DIC FAB/FJR) with the proper billing advice code to 

the billing office to follow-up on unreceived promised adjustments and more than 30 

calendar days have elapsed since receiving a reply promising the billing or adjustment. 

 C4.11.7. Lateral Redistributions (In-Storage Visibility For Both Consumables and 

Reparables). Offices promised credits for lateral redistributions (In-Storage Visibility 

(ISV) for both consumables and reparables) shall follow up on credits not received 

within 30 calendar days of the date shipment confirmation is submitted to the ICP/IMM. 

The initial request must be made by submitting a Request for Billing Adjustment (DLMS 

812R, DIC FAE) record citing BAC 27 to the ICP/IMM. 

 C4.11.8. Other Billing Problems. Billed offices or others will request adjustments 

for problems not covered by billing advice codes by forwarding a letter (or message) of 

explanation along with the information required to process the request for BAC 55. The 

billing office will normally respond with an Adjustment Request (DLMS 812L, DIC FAR 

or FJR format). 

C4.12. PRICE CHALLENGES AND VERIFICATION. DoD 4140.1-R DoD Supply Chain 

Materiel Management Regulation, May 23, 2003 prescribes the basic DoD requirements 

under Service and Agency Price Challenge And Price Verification Programs. Price 

challenges and verification are often mistaken for MILSBILLS "wrong unit price billed" 

procedures. Contact IMM/ICP customer service for assistance filing price challenges. 

C4.13. DISPUTED RESPONSES TO REQUESTS FOR ADJUSTMENT. Billing and 

billed offices are expected to resolve their differences regarding adjustment requests. 

However, when a billed office does not agree with the billing office’s response and the 

billed office considers the amounts involved significant, the billed office may consider 

the dispute an unresolved problem and follow the procedures prescribed in Chapter 1. 

C4.14. ADJUSTMENTS FOR CHANGE NOTICES 

 C4.14.1. Recording Undelivered Orders. If an order is placed with or through the 

DWCF, an undelivered order (obligation) should be recorded when the order is placed. 

A non-stock numbered item should be recorded as an undelivered order when the order 

is accepted. An adjustment to the undelivered order should be processed when a 

change notice affecting price, quantity, or an acceptable substitution of a like item is 

received from the stock fund. Refer to DoD 7000.14-R Volume 6 for more specific 

information on the above requirements. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-12 Enclosure (1), CHAPTER 4 

 C4.14.2. Customer Not Receiving Change Notice. If a DBOF customer does not 

receive a change notice at all or in time to cancel or modify the order and additional 

funds are required, the materiel may be refused or returned to the DBOF and an 

adjustment requested. Adjustments for this reason shall be forwarded by mail and must 

be signed by the activity accounting officer. The request must meet the following 

requirements and will state essentially: 

"As a result of a price change, quantity change, or authorized substitution, the 

value of the materiel received exceeds amounts obligated and all available 

obligation authority. Request credit for the indicated quantity and items delivered 

under the following requisition document and suffix number. Please also provide 

us with the return instructions for the materiel." 

 C4.14.3. Honoring Requests. The billing office shall honor all such requests and 

provide adjustment, without regard to dollar value, after the materiel is returned. The 

ordering activity shall also contact the ICP/IMM to arrange for the return. 

C4.15. SECURITY ASSISTANCE DISCREPANCIES AND BILLING ERRORS 

 C4.15.1. The Military Department may automatically grant adjustments8 and 

charge or credit the administrative surcharge fund when: 

 C4.15.1.1. The request cannot be rejected per the general conditions of the 

U.S. Letter of Offer and Acceptance, and 

 C4.15.1.2. The transaction was billed on a DD Form 645A, Foreign Military 

Sales Statement. 

 C4.15.1.3. The amount of the adjustment requested is either (1) less than 

$100 or (2) less than the amount approved9 for that Military Department by the Defense 

Security Cooperation Agency. 

 C4.15.2. Adjustments for IMM/ICP charges that may not be automatically charged 

to the administrative fund shall be prepared and forwarded to the IMM/ICP in 

accordance with the procedures contained in this chapter. 

C4.16. CREDITS FOR EXCESS REPORTS (MATERIEL RETURNS PROGRAM) 

 

8

 Automatic adjustments may be withheld from specific customers if there is a pattern of abuse of this 

authority. When such a pattern exists, all discrepancies and billing errors from that customer should be 

researched. 

9

 Military Departments may request approval for a different adjustment level. The dollar amounts of 

automatic adjustments will be determined by an agency cost effectiveness study which compares the 

administrative cost of conducting necessary research to determine specific responsibility versus the cost 

which will be incurred by the administrative surcharge pool if an automatic refund is authorized. The 

agency cost effectiveness study must be submitted to Defense Security Cooperation Agency for review 

and approval. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C4-13 Enclosure (1), CHAPTER 4 

 C4.16.1. Procedures. Materiel returns program procedures are prescribed by 

DLMS Volume 2. 

 C4.16.2. Processing Credits. Billing offices shall process credits for excess 

reports during the first billing cycle after receiving notification that materiel authorized for 

return under creditable procedures has been received in a condition warranting credit. 

The portion of credits for materiel laterally redistributed may be fully or partially reversed 

by the IMM when a discrepancy report documents that the materiel was not shipped in a 

condition warranting full credit. 

 C4.16.3. Materiel Returns Program or Procurement Offset Status Request (InStorage Visibility For Both Consumables and Reparables). Offices expecting MRP or 

procurement offset (ISV for both consumables and reparables) shall request credit 

status using the Follow-up for Materiel Returns Program Credit (DLMS 812R, DIC FTP). 

The initial request should be prepared when the credit has not been received and more 

the 30 calendar days have elapsed since the Materiel Receipt Status (DLMS 870M, DIC 

FTZ), citing a creditable status or the Shipment Status (DLMS 856S, DIC AS6) is 

received by the IMM/ICP. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C5-1 Enclosure (1), CHAPTER 5

C5. CHAPTER 5 

INTERFUND BILLING SYSTEM PROCEDURES 

C5.1. POLICY 

 C5.1.1. General. It is DoD policy that DoD customers shall authorize suppliers to 

use the interfund billing system to reimburse themselves for materiel, hazardous 

materiel and waste services, and services related to materiel shipments. 

 C5.1.2. Exclusions 

 C5.1.2.1. The interfund billing system is not mandatory for use when the 

involved funds are Military Assistance Grant Aid or where only limited sales occur 

between the DoD Components. 

 C5.1.2.2. The interfund billing system may not be used to bill non-DoD 

customers (e.g., state or local governments, private contractors, individuals, or 

nonappropriated fund instrumentalities) or for major end items such as complete 

aircraft, ships, tanks, space vehicles, and missiles. 

 C5.1.2.3. Except for the General Services Administration (GSA), the Federal 

Aviation Administration (FAA), and the National Oceanic and Atmospheric 

Administration (NOAA), non-DoD suppliers may not use the interfund billing system to 

bill DoD customers. 

C5.2. PRINCIPLES OF THE INTERFUND BILLING SYSTEM 

 C5.2.1. The interfund billing system allows suppliers to reimburse themselves, 

from appropriations designated by the customer, at the time of billing. The supplier 

forwards an automated billing to the billed office and reports to the Treasury Department 

a reimbursement of the supplying funds, with an offsetting charge to the customer’s 

fund. 

 C5.2.2. Interfund bills are both “bills” and “notices” to a customer that its funds 

have been charged and the “bill” paid. 

 C5.2.3. Billed offices shall, upon receipt of the “bill”, either accept and record the 

charge for the complete or partial bill or, when the charge is questionable or erroneous 

at the detail bill level or in dispute, record the charge into the designated default account 

for further research. Charges shall remain uncleared pending completion of research 

and resolution. The Department of the Navy has been granted a waiver as an 

exception to this procedure. A questionable or erroneous portion of a Navy interfund bill 

will suspend to the interfund clearing account (treasury account symbol F3885). When 

the charge is acceptable, but the account disbursed by the billing office is not, the billed 

office shall accept and record the charge to the proper account. The billed office shall 
DoD 4000.25-M, Volume 5, XXXX 2012 

C5-2 Enclosure (1), CHAPTER 5

also follow procedures prescribed by its disbursing officer to correct the account 

reported to the Treasury Department. 

 C5.2.4. Only the billing office or Central Accounts Office (CAO) is authorized to 

adjust or otherwise reverse reimbursements reported to the Treasury Department on 

behalf of the billing office. 

C5.3. PREPARATION OF INTERFUND BILLS 

 C5.3.1. Interfund bills are made up of one or more detail billing records with the 

same fund code, and a single summary billing record. The summary billing record 

represents a summary of the supporting detail billing records. 

 C5.3.2. Detail billing records in support of interfund bills shall be prepared in 

accordance with Defense Logistics Management System (DLMS) 810L transaction or 

Appendix 3 for legacy 80 column card transactions. 

C5.4. CENTRAL ACCOUNTS OFFICES 

 C5.4.1. General. CAOs are Defense Finance and Accounting Service (DFAS) 

Centers or other federal agencies given the responsibility of reporting on interfund in the 

Statement of Interfund Transactions to the Treasury Department. Depending upon the 

customer organization, they may have seller and or buyer CAO responsibilities. 

 C5.4.2. Seller Central Accounts Offices. DLA Transaction Services forwards 

copies of interfund summary billing records to seller CAOs. Based upon these records, 

seller CAOs report seller interfund self-reimbursements and related buyer 

disbursements to the Treasury Department. Seller CAO interfund bill responsibilities 

are identified by the service code of the seller DoD Activity Address Code (DoDAAC) 

described in Table C5.T1. 

Table C5.T1. Seller Central Accounts Offices 

SELLER DoDAAC 

BEGINS WITH SELLER CAO 

Numeric GSA 

F DFAS-CO 

M DFAS-CL 

N DFAS-CL 

Other DFAS-IN 

C5.4.3. Buyer Central Accounts Offices. Buyer CAOs are responsible for interfund bill 

clearance and report, to the Treasury Department, buyer adjustments of the 

disbursement side of seller reported interfund transactions. Neither buyers nor their 

CAOs can directly or indirectly adjust the reimbursement side of interfund transactions 
DoD 4000.25-M, Volume 5, XXXX 2012 

C5-3 Enclosure (1), CHAPTER 5

reported by seller CAOs. Buyer CAO interfund bill responsibilities are determined by 

the appropriation disbursed according to Table C5.T2. 

Table C5.T2. Buyer Central Accounts Offices 

INDEX TREASURY 

SYMBOL 

LIMIT or 

SUBHEAD 

BUYER 

CAO 

17 All All DFAS-CL 

21 All All DFAS-IN 

57 All All DFAS-CO 

97 NOT 4930 All DFAS-IN 

97 4930 All DFAS-IN 

C5.5. INTERFUND REPORTS 

 C5.5.1. Billing Office Reports. CAOs shall base interfund reimbursements upon 

summary billing records received from DLA Transaction Services for interfund bills 

passing DLMS prescribed DLA Transaction Services edits. Therefore, upon 

implementation of the revised seller interfund reporting procedures, DLMS no longer 

requires sellers to forward DD Form 1400, Statement of Interfund Transactions or 

equivalent reports to their accounts office. However, CAOs may continue to require 

their reporting activities to submit seller interfund reports for a transition period 

determined by the accounts office. 

 C5.5.2. Billed Office Reports. Each billed office shall report (i.e., correct or 

otherwise clear) interfund disbursements charged to the office in accordance with 

procedures prescribed by its Service or Agency. 

 C5.5.3. Department Level Reports. CAOs shall consolidate Department level 

"Statement of Interfund Transactions" and prepare related reports from interfund reports 

received from billed offices and summary billing records validated by DLA Transaction 

Services. 

C5.6. STATEMENT OF INTERFUND TRANSACTIONS 

 C5.6.1. Purpose and Reports Control Symbol. This section prescribes a monthly 

report on interfund transactions. The DD 1400 “Statement of Interfund Transactions” 

provides OUSD(C) with a summarized classification of receipts and outlays processed 

under the interfund billing system. 

 C5.6.2. Applicability and Scope. The provisions of this section apply to the DoD 

Components and to their disbursing officers (referred to collectively as “disbursing 

officers”). It establishes the requirements and procedures for the preparation and 

submission of interfund transaction reports. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C5-4 Enclosure (1), CHAPTER 5

 C5.6.3. Report Form. The “Statement of Interfund Transactions” must be 

prepared monthly and contain totals for each appropriation/limit charged and 

reimbursed, the reporting period, and identify the reporting office. GSA shall submit an 

equivalent “Statement of Interfund Transactions.” 

 C5.6.4. Frequency and Distribution. The “Statement of Interfund Transactions” 

must be submitted to the OUSD(C) as promptly as possible, but no later than close of 

business on the 2nd workday of the month immediately following the close of the 

reporting month. 

 C5.6.5. Adjustments. In preparing the “Statement of Interfund Transactions,” 

CAOs or offices designated by the DoD Components or participating Agencies shall 

convert invalid accounts to the charged agency’s default appropriation as indicated in 

Appendix 2.2. of this guidance. 

 C5.6.6. Other Reporting Requirements 

 C5.6.6.1 Extract of the Statement of Interfund Transactions 

 C5.6.6.1.1. Each Military Department (and GSA for its equivalent report) 

must furnish an “extract” of the “Statement of Interfund Transactions” to the DoD 

Components and other participating Agencies for which it collects or disburses showing 

the transactions for that Component or Agency. The DoD Components may be 

identified by their unique suffix/limit codes on department “97" appropriations. 

 C5.6.6.1.2. Extracts of the “Statement of Interfund Transactions” (and 

GSA equivalent) that are forwarded to DoD CAOs shall be supported by summary 

billing records (DLMS 810L/Document Identifier Code (DIC) FS). The summary billing 

records shall be forwarded electronically to the CAO responsible for clearance. The 

CAO responsible for clearance is determined by the departmental index of the 

disbursed appropriation and, in the case of department “97" appropriations, by the DoD 

Component identification contained in the appropriation’s suffix/limit code. Table C5.T3 

identifies the CAO responsible for clearing interfund bills: 

Table C5.T3. Department of Defense Central Accounts Offices 

CLEARANCE CAO COMMRI INDEX COMPONENT10

DFAS-Indianapolis RUQADVU 97 Other than USAF, USN, USMC, 

and SDDC limit FD30 

21 All 

DFAS-Columbus RUVEGAA 97 USAF 

 

10 For purposes of this procedure, the Component Identification for 97X4930 is in the 1st position of the 

suffix/limit code and is A (USA), N (USN), F (USAF), M (USMC), and 5 (Defense Agencies). For other 

than 97X4930, the identification is in the 1st two positions and is 01 (USA), 02 (USAF), 04 (USN), and 05 

(USMC).
DoD 4000.25-M, Volume 5, XXXX 2012 

C5-5 Enclosure (1), CHAPTER 5

57 All 

DFAS-Cleveland RUEBJNW 97 USN and USMC 

17 All 

 C5.6.6.1.3. The extracts should be submitted as soon as possible but 

no later than 2 workdays after the Statement of Interfund Transactions is submitted to 

OUSD(C). 

 C5.6.6.2. Defense Agency Appropriations. A “Statement of Interfund 

Transactions” summarizing the transactions by appropriation for each Defense Agency 

must be provided to the Director of Budget and Finance, Washington Headquarters 

Service, 1155 Defense Pentagon, Washington, DC 20301-1155. 

 C5.6.7. Hard Copy Report Preparation 

 C5.6.7.1. General 

 C5.6.7.1.1. Each interfund report must be completed with the minimum 

required information. 

 C5.6.7.1.2. If more than one sheet is used to report transaction 

amounts, the grand total for each column must be shown on the last page of the 

statement. Page totals are optional. 

 C5.6.7.1.3. Each hard copy statement must be signed by the officer 

under whose direction it was prepared. 

 C5.6.7.1.4. Negative amounts must be identified by the suffix “CR.” 

 C5.6.7.2. Columnar Entries 

 C5.6.7.2.1. Appropriation or Fund /Symbol. Enter the department index 

number assigned by the Treasury Department as a prefix to that department’s 

appropriation symbols, fiscal year or other appropriate indicator (e.g., “X” if no year, 

etc.), treasury account symbol of the appropriation, other fund, or receipt account for 

which the transaction amounts are being reported. Include any prefix or suffix 

prescribed by the Treasury Department on the classification authorization. No other 

suffix or prefix may be shown. 

 C5.6.7.2.2. Reimbursements (Credits). Enter the amounts of collected 

appropriation reimbursements applicable to each related appropriation or other fund 

account. 

 C5.6.7.2.3. Expenditures (Charges). Enter the amounts of 

disbursements chargeable to each appropriation or other fund symbol. 

C5.7. CENTRAL ACCOUNTS OFFICE LEVEL INTERFUND PROCEDURES 
DoD 4000.25-M, Volume 5, XXXX 2012 

C5-6 Enclosure (1), CHAPTER 5

 C5.7.1. Army, Navy, Air Force, and GSA shall prescribe procedures consistent 

with those prescribed in this Manual for: 

 C5.7.1.1. Reporting interfund reimbursements and disbursements originated 

by Activities serviced by their disbursing offices and shall be included in their “Statement 

of Interfund Transactions.” 

 C5.7.1.2. Adjusting, accepting or otherwise clearing interfund disbursements 

charged to Activities serviced by their disbursing offices and whose adjustments shall 

be included in their Statements of Interfund Transactions. 

 C5.7.1.3. Ensuring there are adequate controls over interfund-related 

transactions such that: 

 C5.7.1.3.1. Lapsed accounts are not reported to the Treasury 

Department or the other DoD Components. 

 C5.7.1.3.2. Invalid account symbols are converted to the agency default 

appropriation as defined in Appendix 2.2 of this regulation. 

 C5.7.1.3.3. Seller interfund reimbursements reported to the Treasury 

Department are based upon interfund billings validated by DLA Transaction Services. 

 C5.7.1.3.4. Disbursements charged to billed offices are processed by 

the billed office. 

 C5.7.1.3.5. Uncleared Disputed Transactions 

 C5.7.1.3.5.1. Uncleared “disputed” transactions shall be 

researched and cleared within a reasonable period (i.e., within 120 calendar days of 

the date the disbursement was reported to DFAS when the entitlement office and 

accounting office are not co-located and 90 days when they are co-located). Amounts 

placed in suspense; that is, charged to the clearing account, are transferred to another 

account or are otherwise cleared within the same period as above. 

 C5.7.1.3.5.2. Within 90 days of the disbursement being report to 

DFAS, or 60 days if co-located, DFAS shall ask the customer to follow up on uncleared 

detail bills. When a customer leaves a detail bill uncharged for 120 calendar days (90 

days if co-located), DFAS shall contact the customer for an appropriation to charge to 

clear the detail bill. Only when a written notification from the seller that an adjustment is 

forthcoming may the item remain unprocessed after this timeframe. Within 90 days of 

the suspense date (60 days if co-located), DFAS will ask the customer to clear the 

amount in suspense and provide an alternative account for the disbursement. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-1 Enclosure (1), CHAPTER 6

C6. CHAPTER 6 

DEFENSE AUTOMATIC ADDRESSING SYSTEM 

C6.1. GENERAL. This chapter describes Defense Logistics Management System 

(DLMS) Finance related procedures and processes for the Defense Automatic 

Addressing System (DAAS). DLM 4000.25-4, “Defense Automatic Addressing System” 

provides additional information regarding support furnished by Defense Logistics 

Agency (DLA) Transaction Services. 

C6.2. MILITARY STANDARD BILLING SYSTEM PROCESSING 

 C6.2.1. Requirement to Route Bills to DAAS 

 C6.2.1.1. As indicated in Chapter 2, sellers shall route all interfund and 

automated “G” series noninterfund billing records to DAAS for editing, retention, and 

further routing to billed offices. 

 C6.2.1.2. Only interfund bills passing MILSBILLS prescribed edits and routed 

by DAAS are eligible for reporting to the Treasury Department and interfund 

reimbursement. 

 C6.2.1.3. All billing records shall be electronically routed to DAAS. 

 C6.2.2. Bill Editing 

 C6.2.2.1. DAAS shall edit and reject any bill that fails any of the following 

edits: 

 C6.2.2.1.1. The record count (positions 5-7 of the legacy 80 column 

card format) of the summary billing record equals the actual count of the supporting 

detail billing records. 

 C6.2.2.1.2. The bill-to Department of Defense Activity Address Code 

(DoDAAC) (positions 30-35) of the summary billing record is a valid DoDAAC, and is 

authorized for use as a bill-to party in accordance with the DoDAAC authority code, as 

outlined in DoD 4000.25-M, “Defense Logistics Management System” Volume 6 (DoD 

Logistics Systems Interoperability Support Services), Chapter 2 – Department of 

Defense Activity Address Directory. Note that DoDAACs are deleted to prevent 

requisition transactions from being processed through DLA Transaction Services. Once 

the delete effective date has passed, the record is physically removed from the master 

file, and bills with the bill-to authorized in accordance with the DoDAAC authority code 

will not reject as invalid during this period. After the five year period, deleted DoDAACs 

are removed from the DLA Transaction Services database, and subsequent bills will 

reject as invalid DoDAACs. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-2 Enclosure (1), CHAPTER 6

 C6.2.2.1.2.1. The bill-to DoDAAC of the summary billing record is 

authorized for use as a bill-to party. An unauthorized United States Air Force (USAF) 

bill-to activity is identified by its structure. 

 C6.2.2.1.2.1.1. DoDAAC begins with FT or FF indicating a 

non-appropriated funded activity, 

 C6.2.2.1.2.1.2. DoDAAC begins with FA or FY, or 

 C6.2.2.1.2.1.3. The first position of the DoDAAC is an “F”, 

followed by one numeric character in position two, and an alpha character in position 

three. 

 C6.2.2.1.3. The amount (positions 65-73) of the summary billing record 

equals the sum of the amounts (positions 65-73) of the supporting billing records. 

 C6.2.2.1.4. The bills are identified as interfund and authorized to be 

billed under interfund procedures. 

 C6.2.2.1.5. The bill-to is one of the following F numeric or F numeric 

alpha DoDAACs. 

 C6.2.2.1.5.1. F (Numeric) (Numeric) (Numeric) (Numeric) 

(Numeric) 

 C6.2.2.1.5.2. F (Numeric) (Numeric) (Numeric) (Numeric) (Alpha) 

 C6.2.2.1.5.3. F (Numeric) (Numeric) (Alpha) 

 C6.2.2.1.5.4. FA series 

 C6.2.2.1.5.5. FF series 

 C6.2.2.1.5.6. FT series. 

 C6.2.2.2. Rejected bills shall be returned to the originator or originating 

communications center with a narrative description indicating the reason for rejection. 

 C6.2.2.2.1. Originators may retrieve any rejected bills within one hour of 

original submission to DAAS. When appropriate, billing offices shall correct and 

resubmit rejected bills. 

 C6.2.2.2.2. Billing offices shall ensure that adjustments for rejected 

billings are properly recorded in their seller accounting records. 

 C6.2.2.3. Upon successful completion of the bill edits, DLA Transaction 

Services shall: 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-3 Enclosure (1), CHAPTER 6

 C6.2.2.3.1. Route billings to the billed office by the best available 

means. 

 C6.2.2.3.2. Ensure that electronically routed bills are routed to the billing 

communications routing identifier (COMMRI) code assigned to the billed office 

DoDAAC. 

 C6.2.2.3.3. Ensure that non-electronically routed bills are mailed to the 

clear-text address of the billed DoDAAC identified for billing. 

 C6.2.2.4. DAAS shall forward images of interfund summary billing records to 

the seller’s Central Accounts Office (CAO). 

 C6.2.3. Bill Retention. DLA Transaction Services shall retain a copy of nonsecurity assistance bills for two years and security assistance bills for four4 years after 

initial routing. 

C6.3. BILL COPY RETRIEVAL 

 C6.3.1. Copies of bills may be retrieved in any of the following ways: 

 C6.3.1.1. MILSINQ. Images of bills may be retrieved from DAAS through 

their web-based MILSBILLS Inquiry (MILSINQ) process. See section C6.5. 

 C6.3.1.2. Retransmission Request. Bills may also be retrieved from DAAS 

by submitting a Request for Retransmission of Interfund Bill (DLMS 812R/Document 

Identifier Code (DIC) QB1). 

 C6.3.1.2.1. DLA Transaction Services shall retransmit a copy of all bills 

matching the billing office DoDAAC and bill number provided on the request. Although 

unlikely, it is possible that DLA Transaction Services will find and retrieve a current and 

prior year bill matching the prescribed retransmission criteria. 

 C6.3.1.2.2. The retransmission request may also be requested via the 

Internet as part of the MILSINQ process. 

 C6.3.1.3. Telephone Request. DLA Transaction Services shall accept 

telephone requests (937-656-3247 or DSN 986-3247) for copies. Telephone requests 

are limited to no more than five bills and the service will be terminated if abused. 

 C6.3.2. Only copies of bills routed by DAAS and within the record retention period 

may be retrieved through the methods described in C6.3.1 above. However, whenever 

DAAS does not find a matching bill, it shall create and forward a request for copy of bill 

(DLMS 812R/DIC FAE billing record, with Billing Advice code 41) to the billing office. 

 C6.3.2.1. Billing offices failing to respond to requests for copies of interfund 

bills received within the record retention period shall be directed by their Service or 

Agency headquarters to reverse the billing. Billed offices shall absorb all charges in the 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-4 Enclosure (1), CHAPTER 6

manner prescribed by their Service or Agency when the record retention period has 

elapsed and they have failed to obtain copies of the bill(s). 

 C6.3.2.2. Forward a billing adjustment reply (DLMS 812L, DIC FAR) with 

Billing Status code DA to advise the requesting office that they have referred their bill 

retransmission (copy) request to the seller. 

C6.4. FUND CODE TABLES. Fund code tables appear on the DLA Logistics 

Management Standards Website 

www.dla.mil/j-6/dlmso/elibrary/manuals/milsbills/ap1.asp#fundcode. 

C6.5. MILITARY STANDARD BILLING SYSTEM INQUIRY PROCESS 

 C6.5.1. General MILSINQ Information 

 C6.5.1.1. MILSINQ is a process established by DLA Transaction Services to 

allow its customers to remotely query the DAAS MILSBILLS database as an alternative 

to the DLMS 812R and DIC QB1 retransmission (send a copy of the bill to me) means 

of obtaining billing information from DAAS. MILSINQ may also be used for the Military 

Standard Requisitioning and Issue Procedures (MILSTRIP) materiel obligation 

validation process. 

 C6.5.1.2. Bills may be queried by the billing DoDAAC or billed DoDAAC and 

may be narrowed to a particular billing month or bill. 

 C6.5.1.3. Once identified, the bills can be viewed, printed, saved to a local 

PC, or retransmitted (copy sent by DAAS to a designated recipient). 

 C6.5.1.4. The MILSINQ Website11 is 

https://www.transactionservices.dla.mil/milsinq. Users will generally be logged off 

systems after 5 minutes of idle time. 

C6.6. MILITARY STANDARD BILLING SYSTEM-RELATED REPORTS 

 C6.6.1. Introduction 

 C6.6.1.1. As part of its logistics information data services, DAAS 

accumulates data from MILSBILLS records it routes and generates reports for 

MILSBILLS use. The reports cover the preceding 12 months. 

 C6.6.1.2. The following MILSBILLS-related reports are available from 

https://www.transactionservices.dla.mil/milsinq: 

 C6.6.1.2.1. Interfund billing adjustments by billing office (Routing 

Identifier Code (RIC) sequence). 

 

11 If the application is not accessible from your browser, contact your local Internet support office for 

assistance in configuring your telnet application for your browser. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-5 Enclosure (1), CHAPTER 6

 C6.6.1.2.2. Interfund bills by billed office (DoDAAC sequence). 

 C6.6.1.2.3. Interfund bills by billed office (DoDAAC within Service). 

 C6.6.1.2.4. Interfund bills by billing office (DoDAAC within Service). 

 C6.6.1.2.5. Interfund bills by billing office (RIC sequence). 

 C6.6.1.2.6. Interfund bills by route to COMMRI (COMMRI sequence). 

 C6.6.1.2.7. Interfund bills rejected by DLA Transaction Services (RIC 

sequence). 

 C6.6.1.2.8. Interfund bill retransmission requests. 

 C6.6.1.2.9. In-storage Visibility Redistribution (ISVR) credit report 

‘Lateral Redistribution.’ 

 C6.6.1.2.10. Rejected interfund bills by billed office (Service sequence). 

 C6.6.1.2.11. Rejected interfund bills by billing office (DoDAAC within 

Service). 

 C6.6.2. Interfund Billing Adjustments By Billing Office Routing Identifier Code 

 C6.6.2.1. This report provides each billing office RIC with data related to 

billing adjustment requests and responses. With the exception of DIC QB1, all 

adjustment requests processed by DAAS during the indicated reporting month and year 

are included. Figure C6.F1 shows an example of this report. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-6 Enclosure (1), CHAPTER 6

Figure C6.F1. Interfund Billing Adjustment Example 

 C6.6.2.2. Total number of requests and replies are provided for each billing 

RIC, with subtotals for each listed RIC series (first position of RIC) and a grand total for 

the report. Request details include numbers by advice code groupings and reply details 

include numbers by billing status code groupings. 

 C6.6.3. Interfund Bills By Billed Office. This report provides each billed office 

(BILLED DODAAC) with the number of interfund bills (NO. BILLS), the number of detail 

billing records (NO. DETAILS) that supports the bills, and the value ($ VALUE) of 

interfund bills processed by DAAS during the report month. The report provides a page 

break, a total (SUBTOT) for each service, and a total (TOTAL) for the report. Figure 

C6.F2 shows an example of this report. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-7 Enclosure (1), CHAPTER 6

Figure C6.F2. Interfund Bills by Billed Office Example 

 C6.6.4. Interfund Bills By Billing Office. This report provides each billing office 

(BILLING RI CODE) with the number of interfund bills (NO. BILLS), the number of detail 

billing records (NO. DETAILS) that support the bills, and the value ($ VALUE) of 

interfund bills processed by DAAS during the report month. The report provides a page 

break, a total (SUBTOT) for each Service, and a total (TOTAL) for the report. 

 C6.6.5. Interfund Bills Rejected By DAAS. This report identifies, in a summarized 

form for each billing office, the number, value, and reasons why interfund bills were 

rejected by DLA Transaction Services. Figure C6.F3 shows an example of this report. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-8 Enclosure (1), CHAPTER 6

Figure C6.F3. Interfund Bills Rejected Example 

 C6.6.6. Interfund Bill Retransmission Request. This report summarizes the 

number of interfund bill retransmission requests and outcomes for the requests by 

billing RIC. Figure C6.F4 shows an example of this report. 

Figure C6.F4. Interfund Bill Retransmission Request 

 C6.6.7. Interfund Bills By Route-To COMMRI Code. This report provides a 

monthly summary of interfund bills by "route-to" COMMRI code for bill route by DAAS, 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-9 Enclosure (1), CHAPTER 6

the number of interfund bills (NO. BILLS), number of detail billing records (NO. 

DETAILS), and the dollar value of the bills (DOLLAR VALUE) are summarized by 

Service for each billed-to DoDAAC (BILLED DODAAC) within a communications office 

to which bills are routed (COMMRI) by DAAS during a month. 

 C6.6.8. In-storage Visibility Redistribution Credit Report. This is a report of 

laterally redistributed materiel and ISV procurement offset reimbursements. It shows 

the number and dollar value of credits for materiel, transportation, packing, crating, and 

handling by DoDAAC and/or RIC receiving the credit. See Figure C6.F5 for an example 

of this report. 

Figure C6.F5. In-storage Visibility Redistribution Credit Report 

 C6.6.9. Rejected Interfund Bills by Billing Office (Service Sequence). This report 

provides a listing of interfund bills that failed MILSBILLS prescribed DAAS edits. These 

bills were returned by DLA Transaction Services to the billing office. The report 

identifies bills by billing office and identifies the billed DoDAAC, bill number, and dollar 

value. See Figure C6.F6 for an example of this report. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C6-10 Enclosure (1), CHAPTER 6

Figure C6.F6. Rejected Bill by Billing Office 

C6.7. OTHER DEPARTMENT OF DEFENSE ACTIVITY ADDRESS CODES 

AUTHORIZED INTERFUND 

 C6.7.1. DLA Transaction Services shall edit service code H requisitions to ensure 

that interfund procedures are appropriate for the requisitioner. Other DoD Components’ 

requisitions for which interfund billing is appropriate are those in which the requisitioning 

DoDAAC is identified as authorized interfund billing. See Appendix AP1 for more 

information. 

 C6.7.2. If necessary, DLA Transaction Services will change the fund code cited on 

other DoD Components’ requisitions to XP when the H-Series requisitioning DoDAAC is 

not identified as authorized interfund billing. 

 C6.7.3. Other DoD Components may add their DoDAAC (to allow for interfund 

billing) or delete a listed DoDAAC (mandatory noninterfund billing). To request a 

change, use the comment form on the DLA Logistics Management Standards Website 

www.dla.mil/j-6/dlmso/About/Comment/comment_form.php. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C7-1 Enclosure (1), CHAPTER 7 

C7. CHAPTER 7 

VERIFICATION OF FUNDS AVAILABILITY WEB CALL 

FOR REQUISITIONS SUBMITTED VIA INTERNET 

ORDERING APPLICATIONS 

C7.1. IMPLEMENTING FUNDS AVAILABILITY VERIFICATION. Internet ordering 

applications that accept Military Standard Requisitioning and Issue Procedures 

(MILSTRIP) requisitions dependent upon interfund billing procedures (e.g., DoD 

EMALL, General Services Administration (GSA) Advantage/GSA Global) shall 

implement Defense Logistics Management System (DLMS) procedures for verification 

of Component funds availability. Components shall establish procedures to process the 

request for verification of funds availability and ensure subsequent establishment of a 

financial obligation. 

 C7.1.1. DoD Components may authorize manual recording of the financial 

obligation by the customer as a separate action until an automated interface between 

the ordering application and a Component-sponsored financial system is available. 

 C7.1.2. Where an interface is not available, external ordering applications shall 

alert users to comply with their Component-directed financial procedures. 

C7.2. FUNDS AVAILABILITY REQUEST. The Verification of Funds Availability 

Request shall be prepared as a web call for online, real-time processing in the format 

prescribed at www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4a2.docx. 

C7.3. BUSINESS RULES. Business rules for processing the Verification of Funds 

Availability Request are as follows.12

 C7.3.1. Ordering applications shall not send requisitions, requisition modifications, 

and requisition follow-ups to the Source of Supply (SoS) until the funds availability 

check is completed and positive confirmation is received. 

 C7.3.2. The Verification of Funds Availability Request shall be forwarded to the 

Army when the requisition identifies an Army DoDAAC in either the document number 

or supplemental address. 

 

12 Under the pilot program, implementation is limited to an interface between DoD EMALL and GSA 

Advantage/GSA Global and the Army Funds Control Module and the Marine Corps financial application. 

Additional Component interfaces are projected under future phases. Refer to ADC 328. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C7-2 Enclosure (1), CHAPTER 7 

C.7.4. FUNDS AVAILABILITY REPLY. The Verification of Funds Availability Reply 

shall be prepared as a web call for online real-time processing in the format prescribed 

at www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4a3.docx. 

C.7.5. PROCESSING MULTIPLE LINE ITEMS. When multiple line items are included 

in the customer’s “shopping cart,” they shall be processed for funds verification as 

individual requisitions in succession by sequence13 described below, thereby allowing 

funds to be applied appropriately should there be insufficient funds for the entire “cart.” 

The sequence shall be: 

 C7.5.1. Priority Designator (PD). 

 C7.5.2. OSD/JCS project codes. 

 C7.5.3. Special Requirements Code 999 and PD 01-03. 

 C7.5.4. Special Requirements Code N (NMCS) (PD 01-08). 

 C7.5.5. Special Requirements Code E (ANMCS) (PD 01-08). 

 C7.5.6. Special Requirements Code 555 and PD 01-08. 

 C7.5.7. Required Delivery Date. 

C7.6. VERIFICATOIN OF AVAILABILITY REPLY CODE. The receiving DoD 

Component shall verify funds availability and provide the applicable reply code. 

 C7.6.1. Under the following criteria, the requisition shall be considered acceptable 

for further processing by the Internet ordering application and forwarding to the SoS by 

citing an alpha Funds Verification (FV) Reply Code. 

 C7.6.1.1. If funds are available for the bill-to DoDAAC and no error conditions 

exist, the requisition shall be authorized for continued processing, the funds available 

balance decremented, and the applicable financial obligation established. Cite FV 

Reply Code A. 

 C7.6.1.2. If the bill-to DoDAAC is determined under internal Component 

procedures as not applicable to the funds verification process (e.g., funded by an 

alternative funding source, which the Component is not able to verify), the requisition 

shall be authorized for continued processing with no action. Cite FV Reply Code B. 

 C7.6.1.3. If the bill-to DoDAAC is not identified in the web call due to 

procedures for third-party billing (bill-to DoDAAC associated with the Fund Code/Signal 

 

13 Sequencing rules are based upon those established for demand sequencing under MILSTRIP Chapter 

3, paragraph 3.1.2. These rules deviate from demand sequencing to include use of the RDD. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C7-3 Enclosure (1), CHAPTER 7 

Code C or L)14, but the requisitioner DoDAAC has funds available and no error condition 

exists, the requisition shall be authorized for continued processing, the funds available 

balance decremented, and the applicable financial obligation shall be established under 

the requisitioner’s DoDAAC. Cite FV Reply Code C. 

 C7.6.1.4. If the bill-to DoDAAC is not identified in the web call due to 

procedures for third-party billing (bill-to DoDAAC associated with the Fund Code/Signal 

Code C or L), and the funds verification cannot be approved using the requisitioner 

DoDAAC, but no error condition exists, the requisition shall be authorized for continued 

processing with no action. Cite FV Reply Code D. 

 C7.6.1.5. If the unique message identification number (control number) 

assigned for the web call is a duplicate of a previously processed funds availability 

request, but funds are available, the requisition shall be authorized for continued 

processing. Cite Funds Verification (FV) Reply Code E. 

 C7.6.1.6. Under Component-directed procedures, requisitions may be 

forwarded for funds verification even where the requisitioner’s Component is not 

responsible for reimbursement to the SoS, e.g., a requisition with an Army requisitioner 

and a Navy bill-to activity. The requisitioner’s Component may choose to obligate funds 

under the requisitioner DoDAAC as a precaution. The Army has directed that these 

procedures be employed for Army requisitioners. 

 C7.6.1.6.1. If the bill-to DoDAAC is identified as another Component, 

but the requisitioner DoDAAC has funds available, the requisition shall be authorized for 

continued processing, the funds available balance decremented, and the applicable 

financial obligation established. Cite FV Reply Code F. 

 C7.6.1.6.2. If the bill-to DoDAAC is identified as another Component, 

but the requisitioner DoDAAC does not have funds available, no action shall be taken 

by the requisitioner’s financial application and the requisitioner shall be asked to confirm 

that correct information is used in the requisition and an obligation has been recorded 

by the bill-to Component. Cite FV Reply Code G. The customer may choose to 

continue or abort processing (subject to bill-to activity’s funds verification processing, 

when available). 

C7.7. CRITERIA FOR UNACCEPTABLE REQUISITION PROCESSING. Under the 

following criteria, the requisition shall not be considered acceptable for further 

processing by the Internet ordering application by citing a numeric Funds Verification 

(FV) Reply Code. 

 C7.7.1. If funds are not available for the bill-to DoDAAC, the requisition shall not 

be authorized for further processing. Cite FV Reply Code 1. 

 

14 Procedures for verification of third party bill-to DoDAACs are under consideration for a future 

enhancement. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C7-4 Enclosure (1), CHAPTER 7 

 C7.7.2. If the bill-to DoDAAC is not authorized under Component procedures as a 

valid bill-to DoDAAC, the requisition shall not be authorized for further processing. Cite 

FV Reply code 2. 

 C7.7.3. If the Fund Code is not recognized and acceptable to the billed 

Component, the requisition shall not be authorized for further processing. Cite FV 

Reply Code 3. 

 C7.7.4. If the requisition document number (or document number/suffix) is a 

duplicate of a previously established obligation, the requisition shall not be authorized 

for further processing. Cite FV Reply Code 4. 

C7.8. REQUISITON MODIFICATIONS. Requisition modifications shall be processed 

for verification of funds availability to ensure that the original requisition obligation is on 

file and any applicable changes to fund code or bill-to activity are acceptable. The 

materiel identification on the modification must match that on the original requisition. 

The responsible Component shall not reject or establish a new obligation for requisition 

modifications due to a duplicate document number. 

 C7.8.1. Where no action is taken due to a previously recorded obligation and there 

are no error conditions, the requisition modification shall be authorized for further 

processing. Cite FV Reply Code H. 

 C7.8.2. Where the materiel identification does not match that of the previously 

recorded obligation matching on document number, the requisition shall be rejected. 

Cite FV Reply Code 5. 

 C7.8.3. If the Component has no identified obligation for the document 

number (or document number/suffix), process as a new requisition under the above 

procedures for verification of Component funds availability. Cite the applicable FV reply 

code. Note: The funds verification process may result in rejecting modifications to 

requisitions that had previously processed successfully by the SoS. Direct 

communication with the requisitioning Component’s financial office and possibly the 

SoS may be required to resolve the problem. 

C7.9. REQUISITION FOLLOW-UPS. Requisition follow-ups in DLMS 869F, Document 

Identifier Code (DIC) AT_ format shall be processed for verification of funds availability 

to ensure that the original requisition obligation is on file. The materiel identification on 

the follow-up must match the original requisition. The responsible Component shall not 

reject or establish a new obligation for these follow-ups due to a duplicate document 

number. 

 C7.9.1. Where no action is taken due to previously recorded obligation and 

there are no error conditions, the requisition follow-up shall be authorized for further 

processing. Cite FV Reply Code H. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C7-5 Enclosure (1), CHAPTER 7 

 C7.9.2. Where the materiel identification does not match that of the 

previously recorded obligation (matching on document number), the requisition shall be 

rejected. Cite FV Reply Code 5. 

 C7.9.3. If the Component has no obligation identified for the document 

number (or document number/suffix), process as a new requisition under the above 

procedures for verification of Component funds availability. Cite the applicable FV reply 

code. Note: The funds verification process may result in rejecting follow-ups to 

requisitions that had previously processed successfully by the SoS. Direct 

communication with the requisitioning Component’s financial office and possibly the 

SoS may be required to resolve the problem. 

C7.10. REVISION OF REQUISITION CONTENT. Customers receiving a reply code 

indicating that their requisition is not authorized for further processing shall be provided 

an opportunity to revise the requisition content. For example, the customer may choose 

to reduce the extended dollar value by reducing the quantity ordered or correct the billto activity DoDAAC or fund code, as applicable. Subsequent to customer update, the 

Request for Verification Funds Availability shall be re-transmitted. 

C7.11. ALTERNATIVES FOR UNTIMELY APPLICATION INTERFACE. When the 

ordering application is unable to establish a timely interface with the responsible 

Component application, and the customer awaits the real-time funds availability reply, 

the ordering application may offer two alternatives: 

 C7.11.1. Unmonitored Funds Verification. The Verification of Funds Availability 

Request shall be transmitted without direct feedback to the customer. The ordering 

application shall re-send the request every 15-30 minutes for up to 3-hours15 while the 

requisition is held in a pending status. If the reply is received indicating that the 

requisition is authorized for further processing, the requisition shall be forwarded to the 

SoS with no further action. 

 C7.11.1.1. If the FV Reply Code indicates that the requisition is not approved 

for further processing, the Internet ordering application shall retain the FV Reply Code 

for customer queries of requisition status. In addition: 

 C7.11.1.1.1. If the requisition is rejected using FV Reply Code 1-3, the 

ordering application shall transmit the requisition to the SoS via DAAS, citing Supply 

Status CX and the Internet ordering application’s Routing Identifier Code (GSA Internet 

ordering applications shall cite “GSA” and DoD EMALL shall cite “SME”) in the DLMS 

requisition. DAAS shall recognize this as a trigger for preparation of supply status 

indicating rejection of the requisition. DAAS shall prepare and return to all applicable 

status recipients the MILSTRIP Supply Status perpetuating the CX status. The Internet 

 

15 Actual time window for repeated attempts to contact the financial application may vary by Internet 

application. 
DoD 4000.25-M, Volume 5, XXXX 2012 

C7-6 Enclosure (1), CHAPTER 7 

ordering application shall be perpetuated by DAAS as the Routing Identifier Code (RIC) 

From of the Supply Status. DAAS shall not forward the requisition to the SoS. 

 C7.11.1.1.2 If the requisition is rejected using FV Reply Code 4 

(duplicate document number/suffix), the requisition shall not be forwarded. 

 C7.11.1.1.3 If the requisition is rejected using FV Reply Code 5 

(modifier/follow-up with miss-match on materiel identification), the requisition shall not 

be forwarded. 

 C7.11.1.2. If no reply is received after repeated attempts, the requisition shall 

be forwarded to the SoS with no action. 

 C7.11.2. Hold for Later Processing. The customer may choose to place the order 

(“shopping cart”) in a hold status, and retry later. The ordering application shall not 

attempt to re-send the request. The order shall be saved for later processing to be 

initiated by the customer. 

C7.12. BATCH ACCEPTANCE. Where the ordering application accepts batch ordering 

or input via MILSTRIP/DLMS format (e.g., multiple transactions uploaded as a batch, or 

without real-time direct interaction between the application and the customer, such as 

via DoD EMALL Manual Order Entry System (MOES)), the ordering application shall 

process the Verification of Funds Availability Request as described in paragraph 

C7.11.1. above using unmonitored funds verification procedures. 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP1-1 Enclosure (1), APPENDIX 1

AP1. APPENDIX 1 

DEFENSE LOGISTICS MANAGEMENT STANDARDS 

FINANCE PROCESS REVIEW COMMITTEE MEMBERS 

The membership information is available at: http://www.dla.mil/j6/dlmso/Programs/Committees/Finance/financeprc.asp .

STAFFING NOTE: Existing DLMS appendix 1 is removed as the URL to the Finance 

PRC membership is already provided in the body of chapter 1. 

FUND CODE TABLES AND RELATED LISTINGS 

AP1.1. Fund code to fund account conversion tables are published at 

www.dla.mil/j-6/dlmso/elibrary/manuals/milsbills/word/016-AP1.01.docx. 

The authoritative reference table is published at the Defense Automatic Addressing 

System (DAAS) Website https://www.daas.dla.mil/daashome/services.asp. 

AP1.2. Fund code to billed office DoD Activity Address Code (DoDAAC) conversion 

tables are published at 

www.dla.mil/j-6/dlmso/certaccess/elibrary/milsbills/017-AP1.02.docx 

(Requires CAC or PKI Certificate). 

The authoritative reference table is published at the DAAS Website 

https://www.daas.dla.mil/daashome/services.asp. 

AP1.3. H series DoDAACs authorized to use interfund fund codes are published at 

www.dla.mil/j-6/dlmso/certaccess/elibrary/milsbills/018-AP1.03.docx 

(Requires CAC or PKI Certificate). 

The authoritative reference table is published at the DAAS Website 

https://www.daas.dla.mil/daashome/services.asp. 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP2-1 Enclosure (1), APPENDIX 2 

AP2. APPENDIX 2 

VERIFICATION OF FUNDS AVAILABILITY REQUEST 

STAFFING NOTE: The Verification of Funds Availability Request format is still valid, 

but is available via the URL provided in chapter 7, rather than published in a separate 

appendix. 

CODES 

APPENDIX TITLE PAGE 

AP2.1 Document Identifier Codes AP2.1-1 

AP2.2 Fund Codes AP2.2-1 

AP2.3 Billing Advice Codes AP2.3-1 

AP2.4 Billing Status Codes AP2.4-1 

AP2.5 Type of Bill Codes AP2.5-1 

AP2.6 Recipient of Billing Status Codes AP2.6-1 

AP2.7 Sales Price Condition Codes AP2.7-1 

AP2.8 GSA Customer Supply Center Codes AP2.8-1 

AP2.9 Information Indicator Codes AP2.9-1 

AP2.10 Signal Codes AP2.10-1 

AP2.11 Other Codes AP2.11-1 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP2.1-1 Enclosure (1), APPENDIX 2.1 

AP2.1. APPENDIX 2.1 

DOCUMENT IDENTIFIER CODES 

NUMBER OF CHARACTERS: Three 

TYPE OF CODE: Alpha or Alpha Numeric 

EXPLANATION: Identifies all authorized MILSBILLS transactions. 

The “H” series (not shown) are the same as the 

“F” series except for the first position of the code, 

and are reserved for use during simulated 

mobilization exercises (see chapter 2). The “G” 

series codes denote noninterfund billings. 

DIC(s) TITLE 

FAE Request for Adjustment of Non-Fuel Billing 

FAF Follow-up on Request for Adjustment of Non-Fuel Billing 

FAR Reply to Request for Adjustment of Non-Fuel Billing 

FAS Response to Follow-up on Request for Adjustment of Non-Fuel 

Billing 

FA1, GA1 Billing for Issue from Stock (Charge) 

FA2, GA2 Billing for Issue from Stock (Credit) 

FB1, GB1 Billing for Direct Delivery of Stocked Items (Charge) 

FB2, GB2 Billing for Direct Delivery of Stocked Items (Credit) 

FCA Fund Code to Appropriation Update Record 

FCB Fund Code to Billed Office DoDAAC Update Record 

FCT Text Header Record: Fund Code Changes 

FC1, GC1 Billing for Decentralized, Noncatalogued, and Nonstocked Items 

(charge) 

FC2, GC2 Billing for Decentralized, Noncatalogued, and Nonstocked Items 

(Credit) 

FDE Request for Summary Level Billing Adjustment 

FDF Follow-up on Request for Summary Level Billing Adjustment 

FDR Reply to Request for Summary Level Billing Adjustment 

FDS Response to Follow-up on Request for Summary Level Billing 

Adjustment 

FD1, GD1 Materiel Return Program Credit 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP2.1-2 Enclosure (1), APPENDIX 2.1 

DIC(s) TITLE 

FD2, GD2 Materiel Return Program Credit (Reversal) 

FE3, GE3 Notice of Nonreimbursable Issue 

FE4, GE4 Notice of Nonreimbursable Issue (reversal) 

FF1, GF1 Billing for DoD Dependent School Supplies (Charge) 

FF2, GF2 Billing for DoD Dependent School Supplies (Credit) 

FG1, GG1 GSA Customer Supply Center Billing (Charge) 

FG2, GG2 GSA Customer Supply Center Billing (Credit) 

FJE Request for Adjustment of Fuel Billing 

FJF Follow-up on Request for Adjustment of Fuel Billing 

FJR Reply to Request for Adjustment of Fuel Billing 

FJS Reply to Follow-up on Request for Adjustment of Fuel Billing 

FJ1, GJ1 Billing for Bulk Petroleum (Charge) 

FJ2, GJ2 Billing for Bulk Petroleum (Credit) 

FK series Reserved for the use of security assistance (see DoD 7000.14, 

Volume 15) 

FL1, GL1 Retail Loss Allowance - Credit Reversal 

FL2, GL2 Retail Loss Allowance - Credit 

FN1, GN1 Accessorial and Other Miscellaneous Billings (Charge) 

FN2, GN2 Accessorial and Other Miscellaneous Billings (Credit) 

FP1, GP1 Billing for Into-Plane Issues (Charge) 

FP2, GP2 Billing for Into-Plane Issues (Credit) 

FQ1, GQ1 Billing for Transportation (Charge) 

FQ2, GQ2 Billing for Transportation (Credit) 

FR1, GR1 Billing for Export Transportation (Charge) 

FR2, GR2 Billing for Export Transportation (Credit) 

FS1, GS1 Summary Billing Record (Net Charge) 

FS2, GS2 Summary Billing Record (Net Credit) 

FTB Reply to Follow-up for Materiel Return Program Credit 

FTP Follow-up for Materiel Return Program Credit 

FT2 Materiel Receipt Status 

FU1, GU1 Progress Payment (Charge) 

FU2, GU2 Progress Payment (Recoupment) 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP2.1-3 Enclosure (1), APPENDIX 2.1 

DIC(s) TITLE 

FX1, GX1 Trade, Quantity, and Other Allowances (Charge) 

FX2, GX2 Trade, Quantity, and Other Allowances (Credit) 

QB1 Request for Retransmission of Bill (Copy) 
DoD 4000.25-7-M, March 2004 

 APPENDIX 2.2 AP2.2-1

AP2.2. APPENDIX 2.2 

FUND CODES 

NUMBER OF 

CHARACTERS: 

Two 

TYPE OF CODE: Alpha or Numeric 

AP2.1. Fund codes are two position alpha/numeric codes used in conjunction with 

Service or Agency Code of the billed office to designate the billing method (interfund 

or noninterfund). When interfund billing is indicated, the fund code also indicates the 

fund account to be charged (disbursed) or credited (refunded). 

 The fund code to disbursement fund account conversion tables are published 

online in Part I of the Fund Code Table at: 

https://www.daas.dla.mil/daashome/services.asp

 Only valid appropriations and limits may be associated with fund codes. The 

undistributed intergovernmental payments account, F3885 may not be 

associated with fund codes or used on interfund bills. 

 When a fund code used in the billing and adjustment process is not found on 

the fund code to disbursement fund account conversion table the appropriation 

charged shall be assigned as follows: 

Organization (Billed Service Code) Interfund Default Appropriation 

Contractor (C, E, L, Q, U) Not applicable, noninterfund 

Non-DoD (G, Z, HX, Numeric) Not applicable, noninterfund 

Army (A, W) 21*2020 

Air Force (D, F) 57*3400 

Navy (N, P, R, V) 17*1804 

Marine Corps (K, M) 17*1106 

Defense Logistics Agency (S, T) 97X4930.5999 

Other Defense Agency (H) Not applicable, noninterfund. 

AP2.2. An additional use for the fund code, when the signal code is C or L, is to 

indicate the DoDAAC of the “bill-to” office. See AP1 for codes. 

AP2.3. Requisitions submitted to DoD Activities and the General Services 

Administration shall always contain a fund code, unless the materiel requested shall 

be issued without charge. When the materiel shall be issued without charge the 

signal code (pos. 51) shall be D or M (free issue) and the fund code shall not be 

significant. 

AP2.4. Defense Agencies and others using H series DoDAACs may use fund codes 

designating interfund billing only if the requisitioning DoDAAC is identified as 

authorized to use interfund. See AP1 for authorized DoDAACs. 
DoD 4000.25-7-M, March 2004 

 APPENDIX 2.2 AP2.2-2

AP2.5. Agency designated Fund Code Coordinators are responsible for maintaining 

fund codes for their Service or Agency. With the exception of DLA, which has its own 

coordinator, Defense Finance and Accounting Service (DFAS) maintains fund codes 

for DoD Organizations and Agencies. Fund code coordinators are identified at 

www.dla.mil/j-6/dlmso/elibrary/manuals/milsbills/ap1.asp#fundcode.
DLM 4000.25, Volume 4, XXXXX 2012 

AP2.3-1 APPENDIX 2.3 

AP 2.3. APPENDIX 2.3 

BILLING ADVICE CODES 

NUMBER OF CHARACTERS: Three 

TYPE OF CODE: Numeric 

EXPLANATION: Billing advice codes are used in requests for billing 

adjustment to identify the nature of the request or 

problem. The first position entry, when present, is 

significant only to the requesting activity. The 

second and third position entries listed below 

convey significant information to the billing office. 

See chapter 4 for information on the use of the 

codes. 

Code Description 

11 Duplicate billing record received. Request credit. 

12 Wrong amount billed. Request credit. 

13 Wrong office billed. Request credit and re-billing to correct office. 

14 Bill received for materiel requisitioned as nonreimbursable. Materiel not 

received. Request credit. 

15 Bill received for unauthorized accessorial charge. Request credit. 

17 Bill received for confirmed canceled requisition. Materiel not received. 

Request credit. 

18 Bill received for back ordered materiel. Materiel not received. Request 

credit. 

19 Incomplete bill. Detail billing records do not support the amount billed. 

Request credit or corrected bill. 

20 Bill received following billing office reply that an adjustment billing could not 

be rendered. Request credit. 

21 TDR (SF 361) submitted over 60 days ago; adjustment bill not received. 

Request credit. 

23 Promised adjustment not received. Request credit. 
DLM 4000.25, Volume 4, XXXXX 2012 

AP2.3-2 APPENDIX 2.3 

Code Description 

24 Reply to Product Quality Deficiency Report (SF 368) indicated adjustment 

authorized. Request refund. 

26 Reply to Supply Discrepancy Report (SF 364) indicated adjustment 

authorized; however, adjustment billing not received. Request credit status. 

27 Material laterally redistributed as directed and shipment status (AS6) 

provided; however, credit billing not received. Request credit status. 

34 Requisitioned materiel received. Request billing status. 

35 Shipment status received for materiel requisitioned for security assistance. 

Request billing status. 

41 Request copy of billing. 

42 Duplicate summary level billing (same bill number). Request credit. 

43 Duplicate summary level billing (different bill number). Request credit. 

44 Duplicate summary level billing within second billing. Request credit. 

51 Unable to process billing under interfund procedures. Request interfund 

reversal and re-billing under noninterfund procedures. 

52 Billed by interfund when requisition or other document specified 

noninterfund billing. Request interfund reversal and re-billing under 

noninterfund procedures. 

55 Refer to accompanying letter of explanation. 

90-99 Reserved for internal use. May not be reflected on any document 

forwarded outside the activity. 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP2.4-1 Enclosure (1), APPENDIX 2.4 

AP2.4. APPENDIX 2.4 

BILLING STATUS 

NUMBER OF 

CHARACTERS: 

Three 

TYPE OF CODE: Alphabetic 

EXPLANATION: Billing status codes are used in replies to requests for billing 

adjustment, duplicate billing, or billing status. The first position 

entry, when present, is significant only to the billing office. The 

second and third position entries listed below convey significant 

information to the billed office. 

Code Description 

“A” SERIES: REQUEST DENIED 

AA Duplicate billing record resulted from receipt of duplicate 

requisition and resulting duplicate issue. 

AB Billing record reflected correct unit price, quantity, and extended 

amount. 

AC Billing record was prepared in accordance with requisition, 

excess report, or request for adjustment. 

AD Either nonreimbursable was not authorized, or if authorized, was 

not specified in the requisition. 

AE Accessorial charge was authorized, requested, and furnished. 

AF Materiel either was not back ordered or was issued following 

notification of back order. 

AG Requested adjustment, not related to a discrepancy report, is 

less than the minimum dollar value prescribed for adjustment. 

AH Prescribed record retention period has elapsed. 

AI Adjustment was issued under bill number shown in pos. 54-58. 

AJ Requisition or excess report did not specify billing under 

noninterfund procedures. 

AK Copy of bill should be requested from DLA Transaction Services.

AM Discrepancy report required the return of the discrepant or 

deficient materiel. Credit cannot be provided until the depot 

receives the materiel. If the materiel was shipped, initiate 

shipment tracer. 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP2.4-2 Enclosure (1), APPENDIX 2.4 

Code Description 

AO1 Request was not received within allowable timeframes. 

AP Cancellation request either was not received or was received but 

not confirmed. 

AR Reply to discrepancy report did not promise adjustment. 

AS Reply was not furnished indicating that billing could not be 

rendered. 

“C” SERIES: REQUEST GRANTED 

CA Duplicate, adjustment, or corrected bill shall be issued in the 

next billing cycle. 

“D” SERIES: ADVISORY RESPONSE 

DA No record of requested bill in DLA Transaction Services files. 

Request forwarded to billing office. 

DC Materiel was issued on a nonreimbursable basis. 

DD Billing or adjustment was rendered under bill number shown in 

pos. 54-58. 

DF No record of cited document number or bill number is on file. 

DH Billing or adjustment under the cited document number shall be 

furnished in the next billing cycle. 

DI Letter of explanation shall follow. 

“E” SERIES: REQUEST REJECTED 

EA Request is incomplete or contains invalid data. Review and 

resubmit with correct data. 

EF No record of duplicate billing under bill number(s) cited. 

EH No duplicate billing. Duplicate summary billing record was not 

reported to the Treasury Department. 

EI No record of requisition or shipment. Submit2

 a copy of the DD 

Form 1348-1, DoD Single Line Item Release/Receipt Document, 

or equivalent. 

 1

 The fact that the record retention period has elapsed by the time the 

discrepancy report is validated or the adjustment request is completed may not be used 

as a basis for denying or failing to comply with the adjustment request if the request was 

submitted within prescribed timeframes. 

2

 For fuel shipments provide the following information by letter or message: 

supply source for product received, contract number for direct deliveries, and if shipped 

by DFSP, the DoDAAC of the DFSP. 
DLM 4000.25, Volume 4, XXXXX 2012

AP2.5-1 APPENDIX 2.5 

AP2.5. APPENDIX 2.5 

TYPE OF BILL CODES 

NUMBER OF 

CHARACTERS: 

Two 

TYPE OF 

CODE: 

Alphabetic 

EXPLANATION: Types of bill codes are provided, at the option of the billing office, 

on the detail billing records to indicate to the billed office the 

purpose of the billing. 

Code Description 

AA Bill for materiel issued, quantity billed is equal to quantity 

requisitioned. 

AB Bill for materiel issued, quantity billed is less than quantity 

requisitioned due to partial issue. 

AC Bill for materiel issued, quantity billed is greater or less than 

quantity requisitioned due to unit pack adjustment. 

AR IMM authorized returns under the Materiel Returns Program. 

DB Bill for the Delta amount (Standard Price minus Exchange Price) 

(Commonly referred to as “Carcass Charge” within Navy). 

DR IMM directed returns under the Asset Visibility (Procurement Offset) 

Program. 

EP Bill at Exchange Price 

(Commonly referred to as “Net Price” within Navy). 

HM Hazardous materiels. 

HW Hazardous waste disposal services. 

LR IMM directed Lateral Redistributions. 

QD Bill to adjust the amount previously billed due to approval of a 

PQDR. 

RB Credit Bill to reverse a Delta Bill (DB) under Exchange Pricing 

(Commonly referred to as “Carcass Charge Reversal” within Navy). 

SC Credit Bill for Serviceable Credit under Exchange Pricing 

(May be Exchange Price or Delta Price for Navy). 
DLM 4000.25, Volume 4, XXXXX 2012

AP2.5-2 APPENDIX 2.5 

Code Description 

TD Bill to adjust the amount previously billed due to approval of a TDR. 

TM Bill for creditable excess materiel returned, reduced credit allowed 

for quantity shown. 

TN Bill for creditable excess materiel returned, full credit allowed for 

quantity shown. 

WP Bill to adjust the amount previously billed due to approval of an 

SDR. 

WR Bill to adjust amount billed previously, due to warehouse refusal. 

WS Bill to adjust amount billed previously, due to billing error detected 

by billing office. 

WT Bill to adjust amount billed previously, due to billing error reporting 

by billed office. 

WU Bill to adjust the amount billed previously, due to approval of 

discrepancy report. Use until codes QD, WP, and TD are 

implemented. 

WV Bill to adjust amount billed previously, due to failure to return 

materiel as directed. 
DLM 4000.25, Volume 4, XXXXX 2012

AP2.6-1 APPENDIX 2.6 

AP2.6. APPENDIX 2.6 

RECIPIENT OF BILLING STATUS CODES 

NUMBER OF 

CHARACTERS: 

One 

TYPE OF CODE: Numeric 

EXPLANATION: Recipient of Billing Status Codes are used in requests for billing 

adjustment to convey to the processor or DLA Transaction Services 

the identity of the activity to receive the billing reply and status. 

Code Description 

2 Reply to DoDAAC shown in pos. 30-35 

4 Reply to DoDAAC shown in pos. 45-50 

9 Reply to DoDAAC designated by pos. 52 
DLM 4000.25, Volume 4, XXXXX 2012

AP2.7-1 APPENDIX 2.7 

AP2.7. APPENDIX 2.7 

SALES PRICE CONDITION CODE 

NUMBER OF 

CHARACTERS: 

One 

TYPE OF CODE: Alphabetic 

EXPLANATION: Indicates that the indicated standard unit price is not the actual 

billing unit price used. The actual billing unit price is equal to the 

billing amount divided by the quantity. 

Code Description 

B Sales price reduced as agreed. The amount billed does not equal 

the unit price extension (quantity times unit price). The actual 

amount is equal to a “discounted” unit price (not shown) extension. 

X Used by Navy. When used on DIC FA1, indicates that this is an 

additional charge for non-return of a Depot Level Repairable 

carcass. When used on DIC FA2, indicates that this is a reversal of 

a previous charge for non-return of a Depot Level Repairable 

carcass. 
DoD 4000.25-7-M, March 2004 

 APPENDIX 2.8 AP2.8-1

AP2.8. APPENDIX 2.8

GENERAL SERVICES ADMINISTRATION CUSTOMER 

SUPPLY CENTER CODES 

NUMBER OF CHARACTERS: Two 

TYPE OF CODE: Numeric 

EXPLANATION: Codes identifying GSA customer supply centers 

Code Location

11 Naval Air Depot, Jacksonville, FL 

Building 101, Gate #1 

Mezzanine #5 

Jacksonville, FL 32212 

21 Servmart – Quantico, VA 

7 Zeilin Road 

Building #7 

MCB Quantico, VA 22134-5109 

25 RAF Lakenheath 

48 Fighter Wing – Logistics Readiness Squadron 

RAF Lakenheath, Bldg 1035 

Brandon, Great Britain IP27 9PN 

26 U.S. Army – Chievres 

U.S. Army Hangar 3 

Base Aerienne DeEta 

7950 Chievres, Belgium 

27 U.S. Army – Schinnen 

U.S. Army Building 73 

Nutherweg 60 

5365 ER Schinnen, Netherlands 

39 U.S. Marine Corps Air Ground Combat Center – 29 Palms 

GSA Global Supply Store 

Building 1102 

Twenty-nine Palms, CA 92278-8108 
DoD 4000.25-7-M, March 2004 

 APPENDIX 2.8 AP2.8-2

Code Location

41 U.S. Marine Corps Air Station – Iwakuni 

USMC Servmart #41 

GSA Global Supply 

Building 1007, Bay 701 

Misumi-Machi, Iwakuna-Shi 

Yamaguchi-Ken Prefecture, SW Honshu 740-2005 (JP) 

MCAS Iwakuni, Japan 

43 U.S. Air Base – Misawa 

Unit 5014, Building 1334 

35 Logistics Readiness Squadron 

\1-Chrome, Hirahata, Misawa City 

Aomori-Prefecture, Japan 033-0012 (JP) 

44 U.S. Air Base – Kadena 

GSA Global Supply Mart #44 

Unit 5257 Building 792 

18 Logistics Readiness Squadron 

Kadena-Cho, Okinawa-Prefecture, Japan 904-0117 (JP) 

Kadena AB, Okinawa Japan 

46 U.S. Air Base – Yokota 

GSA Global Supply Mart #46 

Unit 5234 Building 924 

374 Logistics Readiness Squadron 

Fussa-City, Tokyo Prefecture, Japan 197-00001 (JP) 

48 U.S. Air Base – Osan 

GSA Global Supply GSA Mustang Mart #48 

Unit 2078, BLDG 819, Building 837 

51 Logistics Readiness Squadron Song 

Tan City, (ROK), Korea 459-120 (ROK) 

Osan AB, Korea 

50 U.S. Air Base – Kunsan 

GSA Global Supply GSA Wolfpack Mart #50 

Unit 2025, Building 823 

8 Logistics Readiness Squadron 

Gwangju Cholla-Buk Do, (ROK) Korea 570-150 (KR) 

Kunsan AB, Korea 
DoD 4000.25-7-M, March 2004 

 APPENDIX 2.8 AP2.8-3

Code Location 

53 U.S. Army Garrison – Camp Zama 

GSA Global Supply Mart #53 

Unit 5006, Building 320 

Department of Logistics – 17th Supply Area Support Group 

Soubudai, Zama City 

Kanagawa-Prefecture Japan 228-0027 (JP) 

64 GSA Global Supply Store 

450 Golden Gate Avenue 

San Francisco, CA 94102 

65 Servmart – Camp Pendleton, CA 

Building 2210 

Camp Pendleton, CA 92055 

71 Marine Corps Base - Camp Butler 

GSA Global Supply Mart #71 

Unit 5001, Building 5969 

Chatan-cho, Okinawa-Prefecture 904-0200 (JP) 

Okinawa Ryukyu, Japan 

USMC Camp Butler, Okinawa Japan 

73 U.S. Marine Corps Base – Camp LeJeune 

LeJeune First Choice 

1606 Fir Street 

Camp LeJeune, NC 28542-0007 

74 U.S. Naval Base Marianas (Not a Walk-in Store) 

 Defense Distribution Center – Guam & Marianas 

GSA Mart #74 

Building 2118 – Receiving Station 

Sumay Drive 

Santa Rita, Guam 96915-1000 

76 U.S. Army – Baumholder 

Smith Barracks, Building 8716 

Aulenbacher Strasse 

55774 Baumholder, Germany 

77 U.S. Army Stuttgart 

Patch Barracks, Building 2317 

Katzenbach Strasse 

70569 Stuttgart/Vaihingen, Germany 
DoD 4000.25-7-M, March 2004 

 APPENDIX 2.8 AP2.8-4

Code Location 

78 U.S. Army Mannheim 

Spinelli Barracks, Building 1536 

Am Aubuckel 

68259 Mannheim, Germany 

79 U.S. Army – Kaiserslautern 

Kaiserslautern Industrial Center, Building 2264 

Mannheimer Strasse 209 

67657 Kaiserslautern, Germany 

80 Servmart – Albany, GA 

Marine Corps Logistics Base 

814 Radford Boulevard 

Warehouse 1330 

Albany, GA 31704 

81 USMC – Barstow, CA 

Marine Corps Logistics Base 

C Street Warehouse 8 Door #22 Shop Stores 

Barstow, CA 92311-5050 

89 GSA Global Supply Store 

Building 1726 

530 Kuntz Avenue 

Honolulu, HI 96818 

92 U.S. Naval Base – Yokosuka (Not a Walk-in Store) 

GSA Global Supply Mart #92 

Fleet Industrial Supply Center - Yokosuka, Building B-52 

Honcho 1 Chrome, 1 Ban 

Kanagawa-Prefecture 

Yokosuka - shi, Japan 238-001 (JP) 

93 U.S. Naval Base – Singapore (Not a Walk-in Store) 

Fleet and Industrial Supply Ctr – Det Yokosuka 

GSA Global Supply Mart #93 

Singapore CRRC Program Bldg 74 ODE 

PSA SEMBAWANG Deptford Road 

Sembawang, Singapore SG 

94 GSA Eastern Distribution Center 

1900 River Road 

Burlington, NJ 08016 
DoD 4000.25-7-M, March 2004 

 APPENDIX 2.8 AP2.8-5

Code Location 

95 GSA Global Supply Store 

5250 Gibson Avenue, Bay 4 

Elmendorf AFB, AK 99506-4430 

96 GSA Customer Supply Center 

Building #510 

Rough & Ready Island 

Stockton, CA 95203 

98 GSA Global Supply Store 

Building 2069 Humphreys Road 

Schofield Barracks, HI 96857 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP2.9-1 Enclosure (1), APPENDIX 2.9 

AP2.9. APPENDIX 2.9 

INFORMATION INDICATOR CODE 

NUMBER OF CHARACTERS: One 

TYPE OF CODE: Alpha or numeric 

EXPLANATION: This code, located in position 39 of the summary 

billing record, conveys special information to 

offices receiving the Interfund bill. 

Code Information Conveyed 

H Hazardous Waste Disposal Services 

R Exact reversal of a previously submitted and erroneous summary billing 

record 

X Denoted DLA Transaction Services provided copy1 of an Interfund bill 

 

1

 DLA Transaction Services routes and retains copies of billing originated at a billing 

office. Bills retrieved by DLA Transaction Services from their files and retransmitted to 

an office are copies. Copies may, however, be treated as originals if appropriate. 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP2.10-1 Enclosure (1), APPENDIX 2.10 

AP2.10. APPENDIX 2.10 

SIGNAL CODE 

NUMBER OF CHARACTERS: One 

TYPE OF CODE: Alpha 

EXPLANATION: This code is prescribed by DLM 4000.25-1 and 

is used to designate the bill-to and ship-to (or 

ship-from in the case of DIC FT_ and FD_ 

records) activities. The descriptions shown 

below are presented in an abbreviated form. 

Refer to MILSTRIP for additional information. 

Code Bill-To Ship-To/From 

A Requisitioning/Reporting Activity 

(pos. 30-35) 

Requisitioning/Reporting Activity 

(pos. 30-35) 

B Supplementary Addressee 

(pos. 45-50) 

Requisitioning/Reporting Activity 

(pos. 30-35) 

C Addressee designated by the fund 

code 

Requisitioning/Reporting Activity 

(pos. 30-35) 

D Free issue Requisitioning/Reporting Activity 

(pos. 30-35) 

J Requisitioning/Reporting Activity 

(pos. 30-35) 

Supplementary Addressee 

(pos. 45-50) 

K Supplementary Addressee 

(pos. 45-50) 

Supplementary Addressee 

(pos. 45-50) 

L Addressee designated by the fund 

code 

Supplementary Addressee 

(pos. 45-50) 

M Free issue Supplementary Addressee 

(pos. 45-50) 

W Reserved for Intra-Service use Requisitioning/Reporting Activity 

(pos. 30-35) 

X Reserved for Intra-Service use Supplementary Addressee 

(pos. 45-50) 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP2.11-1 Enclosure (1), APPENDIX 2.11 

AP2.11. APPENDIX 2.11 

OTHER CODES 

NUMBER OF 

CHARACTERS: 

Variable 

TYPE OF CODE: Variable 

EXPLANATION: This appendix provides the source and other 

information for codes used or referred to in this manual 

which are prescribed by other DoD publications and not 

republished in this manual. 

Code Authoritative Source 

Asset Transaction Status DLM 4000.25-1 

CommRI ACP 117 

Content Indicator JANAP 128 

Delivery Source DoD 7000.14-R, Chapter 8, Volume 15 

DoD Activity Address DLM 4000.25, Volume 6, Chapter 2 

FMS Country DoD 5105.38-M 

Media and Status DLM 4000.25-1 

Mode/Method Volume I, DoD 4500.32-R 

Routing Identifier Code DLM 4000.25-1 

Service/Agency DLM 4000.25-1 

Stock Fund or Non Stock 

Fund 

DoD 7000.14-R, Chapter 8, Volume 15 

Transportation Bill DoD 7000.14-R, Chapter 8, Volume 15 

Type of Assistance DoD 5105.38-M 

Unit of Issue1

 DLM 4000.25-1 

 

1

 Also referred to as the Unit of Measurement Code 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP3-1 Enclosure (1), APPENDIX 3 

AP3. APPENDIX 3 

VERIFICATION OF FUNDS AVAILABILITY REPLY 

STAFFING NOTE: The Verification of Funds Availability Reply format is still valid, but is 

proposed to be available via the URL provided in chapter 7, rather than published in a 

separate appendix. 

AP3. APPENDIX 3 

RECORD FORMATS 

DIC TITLE 

FAE 

FAF 

Request for Adjustment of Non-Fuel Billing 

Follow-up on Request for Adjustment of Non-Fuel Billing 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FAE_FAF.docx 

FAR 

FAS 

Reply to Request for Adjustment of Non-Fuel Billing 

Response to Follow-up on Request for Adjustment of Non-Fuel Billing 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FAR_FAS.docx 

FA1, GA1 

FA2, GA2 

Billing for Issue from Stock (Charge) 

Billing for Issue from Stock (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FA1_FA2_GA1_GA2.docx 

FB1, GB1 

FB2, GB2 

Billing for Direct Delivery of Stocked Items Charge) 

Billing for Direct Delivery of Stocked Items (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FB1_FB2_GB1_GB2.docx 

FCA Fund Code to Appropriation Update Record 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/20v4_FCA.docx

FCB Fund Code to Billed Office DoDAAC Update 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FCB.docx 

FCT Text Header Record: Fund Code Related Changes to DLA Transaction Services 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FCT.docx 

FC1, GC1 

FC2, GC2 

Billing for Decentralized, Noncatalogued, and Nonstocked Items (Charge) 

Billing for Decentralized, Noncatalogued, and Nonstocked Items (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FC1_FC2_GC1_GC2.docx 

FDE 

FDF 

Request for Summary Level Billing Adjustment 

Follow-up on Request for Summary Level Billing Adjustment 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FDE_FDF.docx 
DoD 4000.25-M, Volume 5, XXXX 2012 

AP3-2 Enclosure (1), APPENDIX 3 

DIC TITLE 

FDR 

FDS 

Reply to Request for Summary Level Billing Adjustment 

Response to Follow-up on Request for Summary Level Billing Adjustment 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FDR_FDS.docx 

FD1, GD1 

FD2, GD2 

Credit for Excess Materiel Return (Reversal) 

Credit for Excess materiel Return (No Charge) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FD1_FD2_GD1_GD2.docx

FE3, GE3 

FE4, GE4 

Notice of Nonreimbursable Issue 

Notice of Nonreimbursable issue (reversal) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FE3_FE4_GE3_GE4.docx

FF1, GF1 

FF2, GF2 

Billing for DoD Dependent School Supplies (Charge) 

Billing for DoD Dependent School Supplies (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FF1_FF2_GF1_GF2.docx

FG1, GG1 

FG2, GG2 

GSA Customer Supply Center Billing (Charge) 

GSA Customer Supply Center Billing (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FG1_FG2_GG1_GG2.docx

FJE 

FJF 

Request for Adjustment of Fuel Billing 

Follow-up on Request for Adjustment of Fuel Billing 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FJE_FJF.docx

FJR 

FJS 

Reply to Request for Adjustment of Fuel Billing 

Reply to Follow-up on Request for Adjustment of Fuel Billing 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FJR_FJS.docx

FJ1, GJ1 

FJ2, GJ2 

Billing for Bulk Petroleum (Charge) 

Billing for Bulk Petroleum (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FJ1_FJ2_GJ1_GJ2.docx

FL1, GL1 

FL2, GL2 

Retail Loss Allowance - Credit Reversal 

Retail Loss Allowance - Credit 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FL1_FL2_GL1_GL2.docx

FN1, GN1 

FN2, GN2 

Accessorial and Other Miscellaneous Billings (Charge) 

Accessorial and Other Miscellaneous Billings (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FN1_FN2_GN1_GN2.docx

FP1, GP1 

FP2, GP2 

Billing for Into-Plane Issues (Charge) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FP1_GP1.docx

Billing for Into-Plane Issues (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FP2_GP2.docx 

FQ1, GQ1 

FQ2, GQ2 

Billing for Transportation (Charge) 

Billing for Transportation (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FQ1_FQ2_GQ1_GQ2.docx
DoD 4000.25-M, Volume 5, XXXX 2012 

AP3-3 Enclosure (1), APPENDIX 3 

DIC TITLE 

FR1, GR1 

FR2, GR2 

Billing for Export Transportation (Charge) 

Billing for Export Transportation (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FR1_FR2_GR1_GR2.docx

FS1, GS1 

FS2, GS2 

Summary Billing Record (Net Charge) 

Summary Billing Record (Net Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FS1_FS2_GS1_GS2.docx

FTB Reply to Follow-up for Materiel Return Program Credit 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FTB.docx

FTP Follow-up for Materiel Return Program Credit 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FTP.docx

FU1, GU1 

FU2, GU2 

Progress Payment (Charge) 

Progress Payment (Recoupment) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FU1_FU2_GU1_GU2.docx

FW1, GW1 

FW2, GW2 

Cash Discounts (Charge) 

Cash Discounts (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FW1_FW2_GW1_GW2.docx

FX1, GX1 

FX2, GX2 

Trade, Quantity, and Other Allowances (Charge) 

Trade, Quantity, and Other Allowances (Credit) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_FX1_FX2_GX1_GX2.docx

QB1 Request for Retransmission of Bill (Copy) 

www.dla.mil/j-6/dlmso/eLibrary/Manuals/DLM/DLMS/v4_QB1.docx
 Page 1 Enclosure (2), Comparison Chart of Chapter 2

Description of Enclosure 2 Layout 

This enclosure is the table used to compare the equivalent procedures between DOD 4000.25-7-M (MILSBILLS) and DOD 4000.25-M, Volume 5, Finance. The first column assigns each paragraph of MILSBILLS to a cell. The second column reorders 

DOD 4000.25-M, Volume 5 in order to map content to MILSBILLS. In assessing how to best merge the procedures of the two manuals, the content of the table was assigned to one of three categories. The content was highlighted with a color to according to the recommended category. 

 Green highlighted text indicates the final text for the merged chapter and is included in Enclosure 1. A few procedures have a 

comment in the right margin that sought verification of the procedure from a specific FPRC representative. 

 Grey highlighted text indicates the text was recommended to be passed over in favor of the equivalent green highlighted text.  Blue highlighted text indicates: 

1) MILSBILLS text not be merged even though there is no equivalent language in DOD 4000.25-M, Volume 5, Chapter 2, 

or 

2) DOD 4000.25-M, Volume 5 text recommended for deletion as part of PDC 491. 3) Questionable text which sought comment from components during PDC 491 staffing. 

A comment in the right margin accompanies each blue highlighted text to indicate why the text is highlighted blue. 

 In addition, Yellow highlighted, bold, italicized text indicates changes made since the staffing of PDC 491. 
 Page 2 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

C2. CHAPTER 2 C2. CHAPTER 2 

BILLING PROCEDURES DLMS BILLING 

C2.1. CRITERIA AND ELIGIBILITY FOR BILLING C2.1. CRITERIA FOR BILLING  C2.1.1. Shipments From Stock. Billing shall be effected on the basis of drop from inventory or performance of services. Exceptions are as follows: 

 C2.1.1. Shipments from Stock  C2.1.2. Billing. Shipments from stock may be billed 7 calendar days after the materiel is dropped from inventory, provided notification of warehouse refusal or other advice of nonavailability is not received. Exceptions are as follows: 

 C2.1.1.1. Security Assistance. Billings for security assistance shall be effected upon constructive delivery. 

 C2.1.2.1. Foreign Sales. Billings for foreign military sales (FMS) and other security assistance shipments may be billed after constructive delivery. 

 C2.1.1.2. Bulk POL. Billings for bulk petroleum, oil, and lubricants (POL) shipments under Mode/Method codes 2, 8, W, and Z shall be effected upon receipt notification, provided that such notification has been received by the billing office within 15 calendar days of the date of delivery; otherwise, billing shall be effected upon notice of shipment or issue. 

 C2.1.2.2. Petroleum, Oil, and Lubricants (POL). Billings for bulk POL shipments may be billed after notification of receipt or 15 calendar days after the date of shipment or issue, whichever occurs first. 

 C2.1.1.3. Perishable Subsistence Chill and Freeze Items. Billings for perishable subsistence chill and freeze items shall be effected upon drop from inventory. Billings for fresh fruits and vegetables shall be effected upon receipt of an issue transaction from DLA Troop Support. 

 C2.1.2.3. Perishable Subsistence. Billings for perishable subsistence chill and freeze items may be billed after the items have been dropped from inventory. Billings for fresh fruits and vegetables may be billed after an issue transaction is received from a Defense Subsistence Office. 

 C2.1.1.4. Drawdowns. C2.1.2.4. Draw Downs
 Page 3 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

C2.1.1.4.1. Materiel requisitioned under authority of 

Section 506 of the Foreign Assistance Act1 must not be billed until funds are appropriated, with the exception of Working Capital Fund activities. The determination to use Section 506 does not provide obligation or disbursing authority. Section 506 permits the drawdown of existing DoD stocks subject to an appropriation to be made at a later date to effect reimbursement to the Defense account. Since there is no assurance that reimbursement will be received, the transfers cannot be recorded as accounts receivable. Therefore, issues under Section 506 should be treated as transfers without reimbursement. The transaction should be reversed if appropriations are received to reimburse the appropriate accounts. Should Congress fail to appropriate funds for this purpose, the Defense account must absorb these costs. Section 506 drawdowns of GSA or other non-DoD stock are not authorized. 

C2.1.2.4.1. Materiel requisitioned under 

authority of Secdtion 506 of the Foreign Assistance Act, as amended, that is, when the FMS/Grant Aid (GA) type of assistance code is C, may not be billed until funds are appropriated, with the exception of Working Capital Fund activities. Although Section 506 does not provide obligation or disbursing authority it does permit the draw down of existing DoD stocks subject to an appropriation to be made at a later date. Since there is no assurance that defense accounts will be reimbursed, the transfers cannot be recorded as accounts receivable. Therefore, issues under Section 506 will be treated as transfers without reimbursement. The transfer without reimbursement will be reversed when appropriations are received to reimburse the DoD account for the transfer. Section 506 draw downs of General Services Administration (GSA) or other non-DoD stocks are not authorized.2

C2.1.1.4.2. All requests for Working capital Fund 

activities (to include transportation), shall include a funding source, allowing DWCF activities to be reimbursed by the military departments without delay. Orders will not be accepted without a funding source. DoD 7000.14-R, Vol. 12, paragraph 230502 and Vol. 11B, paragraph 110106.A.). 

C2.1.2.4.2. All requests for Workinig Capital 

Fund activities (to include transportation), shall include a funding source, allowing DWCF activities to be reimbursed by the military departments without delay. Orders will not be accepted without a funding source. DoD 7000.14-R, Vol. 12, paragraph 230502 and Vol. 11B, paragraph 110106.A.).

1 Security assistance requisition with type of assistance code of “C.” 2Section 552 of the Security Foreign Assistance Act of 1961 allows the President mayto "direct the draw down” of commodities and services from the inventory and resources of any agency of the United States Government”. Under DLMS, except for the use of DoD (Section 506) or any agency (Section 552) assets, draw downs under both sections are identified and treated similarly.
 Page 4 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.1.2. Direct Deliveries of Materiel From Contractors. When an inventory manager item is out of stock, doesis not carriedy an item, or otherwise requesteds direct delivery of materiel from a vendor, the billing shall be effected upon notification of receipt of materiel by the customer or notification of shipment by the vendor. However, issues by Mode/Method codes 2, 8, W, and Z shall be billed based upon the issue transaction if the notification is not received by the inventory manager within 15 calendar days of the date of issue. 

 C2.1.3. Direct Deliveries of Materiel from Contractors. Materiel shipped directly to customers from DoD vendors may be billed after the customers confirm they have received the materiel or the vendor confirms it has shipped the materiel, whichever occurs first. 

 C2.1.3. In-Storage Visibility (ISV) Lateral Redistributions. When an Integrated Materiel Manager/Inventory Control Point (IMM/ICP) laterally redistributes materiel, reimbursement to the reporting activity and billing to the requisitioning activity shall be effected upon notification of receipt by the requisitioning activity.  C2.1.4. ISV Procurement Offset. When materiel is returned to the IMM/ICP to offset or preclude procurement, reimbursement to the returning activity is authorized upon receipt, inspection, and acceptance of materiel as evidenced by the IMM/ICP’s generation of a creditable Materiel Receipt Status (DI code FTZ).  C2.1.5. Customer Asset Report (MRP) Credits. Materiel Return Program (MRP) credits are authorized upon receiving notification that materiel, authorized for return under creditable procedures, has been received in the offered condition and quantity.  C2.1.6. Materiel Services. Billings for services related to materiel shipments and returns not included in the materiel price are authorized after the services are rendered. C2.2. PREPARATION OF BILLS C2.2. PREPARATION OF DLMS BILLS 
 Page 5 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.2.1. General. Bills shall be prepared within 30 calendar days of the criteria provided in section C2.2 and must identify each shipment, delivery, service performed, or refund earned. 

 C2.1.4. Other. Adjustments and credits will be billed within 30 calender days of the transaction or letter committing the organization to providing the adjustment.  C2.2.1.1. Use of DS 810L. Billing offices will prepare DLMS bills using DS to Federal IC 810L, Logistics Bill (http://www.dla.mil/j6/dlmso/eLibrary/TransFormats/140_997.asp). C2.2.1.3. Submission Timeframe. Billing offices will transmit DLMS bills to customers within 14 calendar days of the billing eligibility criteria provided in Section C2.1. Separate billing lines will be prepared for each shipment or delivery and for each accessorial charge supporting the DLMS bill. Refer to Chapter 4 for additional information on interfund reporting procedures. 

 C2.2.2. Material Billing And Credit Amounts. In general, billings for materiel shall be at the standard price in effect at the time of shipment and credit adjustment (refunds) shall be at the price originally billed. Exceptions are identified in the following subparagraphs. Billings and credits for services or allowances related to materiel shipments shall be processed as prescribed by section C2.5.  C2.2.2.1. Lateral Redistribution Credits. Reimbursements for materiel laterally redistributed shall be processed at the standard price in effect at the time of shipment. Credits may be fully or partially reversed by the IMM/ICP when a validated discrepancy report documents the materiel was not shipped in a condition or quantity warranting full credit. 
 Page 6 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.2.2.2. ISV Procurement Offset and MRP Credits. Credits shall be processed at the acquisition cost in effect at the time of receipt. Credits may be less if, in the opinion of the IMM/ICP, the materiel received is not in a condition and or quantity to warrant full credit.  C2.2.2.3. Quality Deficiency Reports. When the original requisition number cannot be identified, the credits shall be at the current standard price. 

C2.17. MATERIEL BILLING AND CREDIT AMOUNTS 

 C2.2.2.4. Materiel Returns to DLA from Industrial Sites under Base Realignment and Closure (BRAC) Retail Storage and Distribution (SS&D)/Inventory Management and Stock Positioning (IMSP), and National Inventory Management Strategy3. A variation of the MRP program is used for processing materiel returns to DLA from selected sites in support of the BRAC SS&D/IMSP and NIMS. Standard MRP DLMS/MILSTRIP transactions do not apply. No credit for packaging, crating, handling, or transportation shall be provided.

 C2.17.1. Materiel Returns to DLA from Industrial Sites under Base Realignment and Closure (BRAC) Retails Supply, Storage and Distribution (SS&D)/Inventory Management and Stock Positioning (IMSP), and National Inventory Management Strategy (NIMS) Sites4. A variation of the MRP Program is used for processing materiel returns to DLA from selected sites in support of the BRAC SS&D/IMSP and NIMS. Standard MRP DLMS/MILSTRIP transactions do not apply. No credit for packing, crating, handling, or transportation shall be provided. 

3 DLA is required to request approval of new procedures supporting BRAC/NIMS allowing full materiel credit for returns regardless of asset position with no credit for PCH&T. 4 DLA is required to request approval of new procedures supporting BRAC/NIMS allowing full materiel credit for returns regardlsee of asset position with no credit for PCH&T. 
 Page 7 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.2.2.4.1. Industrial Sites. DLA-managed materiel returned by an industrial customer at BRAC industrial sites will be accepted into DLA inventory regardless of DLA wholesale asset stock position. Credit shall be processed based upon a receipt of the returned materiel corresponding to a sale to Service maintenance (identified by DoDAAC series/internal customer group) for the same materiel and condition which was completed within the 60-day period prior to the date on the return. Credit shall be processed at the full selling price of the item on the original order(s) used as reference, up to 100% credit for return quantity less than or equal to the quantity on the order(s) used a reference. DLMS/MILSBILLS Billing for Issue from Stock (810L/DI FA2) shall be used to provide credit under modified business rules. Credit for any quantity returned over the original amount, in a different condition code than the original sale, or unmatched is subject to DLA ICP stock position using business rules equivalent to the MRP for determining whether to provide credit/credit amount contained in DoD 4140.01-M. The Service’s financial system will be notified of any resulting credit via a DLMS/MILSBILLS Materiel Returns Program Credit (810L/DI FD2). 

 C2.17.1.1. Industrial Sties. DLAmanaged materiel returned nu an industrial customer at BRAC industrial sites will be accepted into DLA inventory regardless of DLA materiel corresponding to a sale to Service maintenance (identified by DoDAAC series/internal customer group) for the same materiel and condition which was completed within the 60 day period prior to the date on the return. Credit shall be processed at the full selling price of the item on the original order(s) used as reference, up to 100% credit for a return quantity less than or equal to the quantity on the order(s) used as reference. DLMS/MILSBILLS Billing for Issue from Stock (810L/DI FA2) shall be used to provide credit under modified business rules. Credit for any quantity returned over the original amount, in a different condition code than the original sale, or unmatched is subject to DLA ICP stock position using business rules equivalent to the MRP for determining whether to provide credit/credit amount contained in DoD 4140.01-M. The Service’s financial system will be notified of any resulting credit via a DLMS/MILSBILLS Materiel Returns Program Credit (810l/DI FD2). 
 Page 8 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.2.2.4.2. NIMS Sites. Credit for materiel returns from a NIMS site customer will be processed based upon the return receipt. The DLA ICP shall process the receipt and determine if a sale has occurred for the same materiel, condition code, and customer within a 60-day time frame reflecting the exact same document number as the receipt (return) document. If there is an exact matching sale, the customer shall receive credit equal to the original sale. Credit for any quantity return over the original amount, in different condition code than the original sale, or unmatched is subject to credit/credit amount. The Service’s financial system will be notified of any resulting credit via a DLMS/MILSBILLS Materiel Returns Program Credit (810L/DI FD2) 

 C2.17.1.2. NIMS Sites. Credit for materiel returns from a NIMS site customer will be processed based upon the return receipt. The DLA ICP shall process the receipt and determine if a sale has occurred for the same materiel, condition code, and customer within a 60 day time frame reflecting the exact same document number as the receipt (return) document. If there is an exact matching sale, the customer shall receive credit equal to the original sale. Credit for any quantity returned over the original amount, in a different condition code than the original sale, or unmatched is subject to DLA ICP stock position using business rules equivalent to the MRP for determining whether to provide credit/credit amount. The Service’s financial system will be notified of any resulting credit via a DLMS/MILSBILLS Materiel Returns Program Credit (810L/DI FD2).  C2.17.2. Reserved

 C2.2.3. Method of Billing C2.2.2. Method of Billing  C2.2.3.1. Bills arising from transactions which contain a National Stock Number within the DoD will be collected through the Military Standard Billing System (MILBILLS) interfund billing procedures when supported by the supply and accounting systems. The provider will not accept a MIPR if interfund can be used. Manual billing (i.e., the XP fund code) will not be used unless approved by the Deputy Chief Financial Officer. For intragovernmental interfund disputes, follow the dispute process outlined in Chapter 4.5 Billings to DoD offices must be under interfund procedures except as provided below. 

 C2.2.2.1. Ordering/Reimbursement. Ordering activities will generally authorize providers of goods and related services to use the interfund method of reimbursement for orders processed under DLMS procedures. Not withstanding the general rule, on a case-by-case basis, a DoD activity may exercise its right to request a noninterfund invoice. 

5 From DoD 7000.14-R, Volume 4, Chapter 3 Receivables, Paragraph 030504.B (November 2009)
 Page 9 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.2.3.2. Billing shall be under noninterfund procedures when: 

 C2.2.2.2. Noninterfund Reimbursement. A noninterfund method of reimbursement must be used when the bill-to party is either a non-DoD activity or a DoD contractor. 

 C2.2.3.2.1. The bill-to office is non-DoD (Bill-To Service Code is numeric, G, or Z),  C2.2.3.2.2. The bill-to office is a DoD contractor (BillTo Service Code is C, E, HG, L, Q, SD or U),  C2.2.3.2.3. The bill-to office is DoD (bill-to service code is alpha other than C, E, G, HG, L, Q, SD, U or Z) and the fund code requires noninterfund billing (normally XP fund code),  C2.2.3.2.4. The bill-to office is another-DoD Component (Bill-To Service Code is H) and the fund code is not identified as a valid fund code,  C2.2.3.2.5. The bill-to office is Army & Air Force Exchange Service (AAFES) (Bill-To Service Code is H followed by an X),  C2.2.3.6. DLA Transaction Services will reject bills when they fail any of the edits. See Chapter 6.2 for information about the routing and editing of bills processed through DLA Transaction Services. Rejected bills will be returned to the originating communications center with a narrative description indicating the reason for rejection. Billing offices will correct the rejected bills and resubmit them to the DLA Transaction Services. Billing offices will ensure that all appropriate adjustments for rejected billings and interfund collections are made to seller accounting records.  C2.2.3.3. Method of Billing Summary. Billing methods are summarized in the table below: 

Table C2.T.1. Method of Billing 
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DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

Condition 

Number 

Billed DoDAAC Begins With: And Fund Code is: 

Then the Billing Method is: 

1 C, E, G, HG, 

HX, L, Q, SD, U, Z, or numeric 

Any NON 

INTERFUND 

2 Any Service 

code 

XP or otherwise designates noninterfund 

NON INTERFUND 

3 H Not identified as 

eligible for interfund billing 

NON INTERFUND 

4 Anything other 

than conditions 1, 2, or 3 

INTERFUND 

 C2.2.4. Determining Billed Offices C2.2.3. Determining Bill-To Parties 
 Page 11 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.2.4.1. Billed offices shall be assigned in accordance with the signal code cited on the requisition, asset report, etc. When the Signal Code is C or L, the billed office is assigned by converting both positions of the fund code to a billed Department of Defense Activity Address Code (DoDAAC) as described in Appendix 2. 

 C2.2.3.1. Billed Party. Ordering activities shall identify a billed party DoDAAC for all requisitions or other orders, including nonreimbursable orders.  C2.2.3.2. Billed Party Not Identified. Item managers or other providers of goods and services shall reject requisitions or other orders when a valid billed party is not identified. In the event an order comes through without a valid bill-to party, Bbilling offices will designate the ordering or submitting activity as the bill-to party if, for whatever reason, they are unable to identify a valid billed party. The Service Security Assistance Control Office shall be designated as the bill-to party for unidentifiable security assistance requisitions. The Service control offices are: Army- W25P02, Navy- N65916, and Air Force- FGA2303. 

 C2.2.4.2. The mailing address for noninterfund bills shall be the clear text address prescribed for billing (TAC 3, if assigned; otherwise, TAC 1) in the DoDAAD (DLM 4000.25 Volume 6, C2). The routing for interfund bills shall be based on the billing Communication Routing Identifier (COMM RI). 
 Page 12 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

C2.2.5. Nonreimbursable Bills. Materiel issued under 

nonreimbursable procedures must be reported to the billed office using the Notice of Non-Reimbursable Issue (810L/DIC FE_). 

C2.2.4. Nonreimbursable Invoices 

 C2.2.4.1. GSA Billings. Except for GSA billings of less than $1, materiel issued under nonreimbursable procedures shall be included on invoices as no-charge billing lines.  C2.2.4.2. Waivers. DoD 7000.14-R, Volume 6 provides that if the amount of billings for any one customer is less than $500 at the end of a fiscal year quarter, the billing may be waived. However, working capital and Corps of Engineers civil works funds may not waive reimbursement of any amount.  C2.2.4.3. Processing without Billing. GSA sometimes, at its discretion, processes requisitions of $1 or less without billing. Therefore, any DoD Component having such items unbilled 60 calendar days after receipt of materiel may assume that they will not be billed and cancel the obligation accordingly.

 C2.2.6. Interfund Bills 

 C2.2.1.2. Use of Interfund. If the bill is paid under interfund procedures, the billing office will report the collection to its servicing finance center on its seller interfund report. A separate interfund bill will be prepared for billings applicable to a bill-to DoD Activity Address Code (DoDAAC) and treasury symbol. 

 C2.2.6.1. An interfund bill consists of a Summary Billing Record (DS 810L, DI code FS_) and one or more detail billing records but shall not contain more than 495 records in total. Noninterfund records shall not be included on the same bill. 
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DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.2.6.2 Interfund bills are forwarded to DLA Transaction Services electronically for editing and further routing to the offices billed as described in Chapter 6. Only billings routed by DLA Transaction Services shall be eligible for interfund collection as prescribed in Chapter 5. 

C2.3. DLMS INTERFUND BILLS. Activities will normally authorize providers of goods and services to use interfund reimbursement procedures. All DLMS interfund bills shall be forwarded to DLA Transaction Services within 3 calendar days of the date the related seller interfund report is forwarded to the finance center. The Defense Logistics Agency Transaction Services (DLA Transaction Services)will route invoices to all parties identified in the invoice. 

 C2.2.6.3. Separate detail billing records, selected from the Appendix 3 series appendices, shall be prepared for each shipment of delivery supporting the summary billing record.  C2.2.6.4. The fund code (see Appendix 2) provides procedures for converting fund codes to appropriations charged.  C2.2.6.5. A separate interfund (or noninterfund) bill shall be prepared:  C2.2.6.5.1 when the billed office DoDAAC or fund code changes,  C2.2.6.5.2. when the net amount of the bill (net amount of the detail billing records) equals or exceeds 10 million dollars,  C2.2.6.5.3. when the number of billing records (summary plus detail billing records) exceed 495 records, or  C2.2.6.5.4. when there are different Security Cooperation Customer Codes, in the case of security assistance billings, the country code changes.  C2.2.6.6. The recommended standard for interfund bill numbers is found in the table below: 

Table C2.T2. Standard Interfund Bill Numbers 
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DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

If the Billing Month Is: 

The 1st Position of the Bill Number Will Be: 

If the Billing Month Is: 

The 1stPosition of theBill Number Will Be: 

January A or B July N or P February C or D August Q or R March E or F September S or T April G or H October U or V May J or K November W or X June L or M December Y or Z The remaining four positions of the bill number will be alpha or numeric (characters A-Z or 0 or 9). The bill number shall be unique within the billing month. 

 C2.2.7. Noninterfund Bills  C2.2.7.1. SF 1080, Voucher For Transfers Between Appropriations and/or Funds, or other form approved by Treasury, such as GSA Form 789, Statement, Voucher and Schedule of Withdrawals and Credits, shall be used as the billing document for noninterfund bills. 

 When an activity is unable to use electronic data interchange (EDI) methods (i.e. DS 810L), they may use the SF 1080, “Voucher for Transfers between Appropriations and/or Funds,” or other form approved by the Treasury Department, such as GSA Form 789, “Statement, Voucher, and Schedule of Withdrawals and Credits,” as the billing document for noninterfund bills. 
 Page 15 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.2.7.2. An original of the noninterfund billing shall be provided to the office billed. Noninterfund billings will, at a minimum, be supported by the following information6: document order number, description of the article or services, delivery or other performance date, quantity, and price. The first two items of information will usually be satisfied by the requisition document number and national stock number. The delivery or performance date is the same as the day of year prescribed for the detail billing record appropriate for the issue or service.  C2.2.7.3. Billing offices may, at their option and with the customer’s concurrence, provide automated support for noninterfund billings using the “G” series billing records. These billing records shall be transmitted electronically to DLA Transaction Services which will pass the records to the billed office by the best means available. Hard copy billing documents are not required. 

C2.4. DLMS NONINTERFUND BILLING. When an activity does not authorize the use of interfund reimbursement procedures, DoD providers of goods and services shall use no check reimbursement methods for DoD activities. All DLMS noninterfund bills shall be forwarded to DLA Transaction Services for further routing to all parties identified in the DLMS bill. ... 

C2.3. RETENTION OF BILLING RECORDS  C2.3.1. Billing offices shall maintain records supporting security assistance billings for 6 years and 3 months after the month the billing is forwarded to DLA Transaction Services, or in the case of manually prepared noninterfund bills, mailed to the billed office. 

C2.14. RETENTION OF BILLING RECORDS.  C2.14.1. Billing offices must have accessibility to security assistance billing records for 2 6 years, 3 months after the month of the billing and other bills for 1 year after the billing month. Billing records include not only a copy of the bill but records supporting the bill as well. 

 C2.3.2. Adjustment processing activities shall retain necessary billing records for whatever time period required to process adjustment requests submitted within the timeframes prescribed in Chapter 4. 

 C2.14.2. Adjustment processing activities shall retain accessibility to billing records for whatever time period is required to enable them to process adjustments for requests or validated discrepancy reports when the request or report leading to the adjustment is received within prescribed timeframes. 

6 Though not required, to facilitate the resolution of billing or payment disputes involving noninterfund bills, billing offices should also include electronic contact information on the bill. 
 Page 16 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

{NEW SUBSECTION} 

C2.14.3. For security assistance, interfund bills are 

considered supporting execution documentation required to be maintained by the Implementing Agency in accordance with the DoD 7000.14R, Volume 15, 0602.J.7.General security assistance record retention and Defense Finance and Accounting Service, Security Cooperation Accounting (DFAS SCA) record retention responsibilities are in 7000.14R, Volume 15, Chapter 6. 

C2.4. CORRECTION OF ERRONEOUS BILLINGS C2.12. CORRECTION OF ERRONEOUS BILLINGS  C2.4.1. Billing Forwarded to Customer. When a billing office finds it has issued a bill containing one or more billing lines requiring correction in some way, it shall correct the bill at the billing line level. That is, it shall reverse the erroneous billing line(s), and only such billing line(s), irrespective of dollar amount and include the reversals and corrected billing line(s) in a subsequent bill. The corrections shall be processed as soon as it is practical and shall not await customer requests for adjustments. 

 C2.12.1. Billing Forwarded To Customer. When a billing office finds it has issued an invoice containing one or more erroneous billing lines it shall correct the erroneous billing line in a later invoice. Normally, billing offices are expected to reverse and reissue only the erroneous billing line, not the entire invoice. The corrections shall be processed as soon as it is practical and shall not await customer requests for adjustments. 

 C2.4.2. Billing Rejected By DLA Transaction Services. Billings rejected by DLA Transaction Services must be corrected and resubmitted to obtain reimbursement. Corrective procedures shall include the accounting records to maintain the audit trail and the validity of the records. For example, intransit interfund collections and paid accounts receivables related to the rejected bills will have to be reversed. 

 C2.12.2. Billing Not Forwarded to Customer. When DLA Transaction Services rejects an interfund invoice the billing office shall reverse the interfund collection in its next seller interfund report. 
 Page 17 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.4.3. Notifications. To minimize the workload on all parties involved, billing offices shall consider and decide whether customers and or their Finance PRC representative should be advised of significant or mass billing errors and their planned corrections. Finance PRC representatives shall apprise the chairman and other PRC members of the situation, normally, via e-mail. C2.5. CANCELLATIONS. When an IMM/ICP determines that a requisition has been cancelled, any billings that were generated for that requisition shall be reversed in the first available billing cycle. When the cancellation involves diverting materiel back to stock, the billing must be reversed upon receipt of the materiel. Any charges related to the cancellation that are chargeable to the requisitioner, such as contract termination costs, shall be billed under noninterfund procedures. 

C2.13. CANCELLATIONS. When a provider accepts a customer's request to cancel a requisition or other order, any billings generated for that requisition shall be reversed in the next billing cycle. When the cancellation involves diverting materiel back to stock, the billing shall be reversed upon receipt of the materiel. Any charges related to the cancellation, such as contract termination costs, will be billed under noninterfund procedures. 

C2.6. ALLOWANCES, ACCESSORIAL AND ADMINISTRATIVE COSTS 

C2.9. BILLING FOR ACCESSORIAL AND ADMINISTRATIVE COSTS 

 C2.6.1. DoD Shipments  C2.6.1.1. General. DoD 7000.14-R, Volume 11A provides the general DoD policy for billing accessorial and administrative costs. These costs may be billed under interfund or noninterfund procedures. However, to the extent practicable, billings shall be accomplished in the same manner as the materiel or services. 

 C2.9.1. Purpose. Accessorial and administrative costs may be invoiced using either interfund or noninterfund reimbursement methods. However, in all cases, billing shall be accomplished in the same manner as the materiel. DoD 7000-14-R, Volume 6, provides the DoD policy for billing accessorial and administrative costs.  C2.9.2. Normal Charges. Unless otherwise indicated on ordering documents or transactions, accessorial costs incurred for supply items requisitioned by DoD activities shall be charged to the same funds as the materiel. 

 C2.6.1.2. Retail Loss Allowance 
 Page 18 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.6.1.2.1. DoD 7000.14-R requires working capital fund and other wholesale stock funds to grant a discount for retail losses to retail stock funds based upon net issues after authorized credits or offsets have been applied. These discounts provide funds for losses experienced at the retail working capital fund level. 

C2.5. RETAIL LOSS ALLOWANCE. DoD 7000.14-R, volume IIB, requires the DWCF) to grant a discount for retail losses to retail stock funds based upon net issues after authorized credits or offsets have been applied. These discounts are to provide funds for losses experienced at the retail stock fund level. ... 

 C2.6.1.2.2. Retail loss discounts shall not be granted for sales to commissaries and customers or retail or installation level working capital fund activities. The discount will be included in standard prices as an additional surcharge element. This bill level discount or allowance shall be supported by a Retail Loss AllowanceCredit (DI Code FL2) billing record. 

C2.5. RETAIL LOSS ALLOWANCE. ... Retail loss discounts shall not be granted for sales to commissaries and customers of retail or installation level stock fund activities. However, retail loss discounts are authorized for all military clothing items sold to Military Exchanges. 

 C2.6.1.3. Packing, Crating, Handling, and Transportation  C2.6.1.3.1. Reimbursements for packing, crating, and handling costs for (a) IMM/ICP directed lateral redistributions, (b) IMM/ICP authorized MRP and sales returns, and (c) IMM/ICP directed procurement offset returns associated with ISV shall be a percent of the materiel credit price. The percentage rate shall be at 3.5 percent for consumable items and at 1 percent for reparable items. Billing offices shall use the Accessorial and Other Miscellaneous Billings (DI code FN_) record format to support these billings and reimbursements.  C2.6.1.3.2. Reimbursements for transportation costs for (a) IMM/ICP directed lateral redistributions, (b) IMM/ICP authorized MRP and sales returns, and (c) IMM/ICP directed procurement offset returns associated with ISV shall be for an amount equal to the IMM/ICP’s cost recovery rate for second destination transportation included in the selling price of the materiel and shall be supported by a Billing for Transportation (DI code FQ_ ) record format. 
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DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.6.1.3.3. Billing offices shall use the Accessorial and Other Miscellaneous Billings (DI code FN_ ) or other appropriate record to support billings and reimbursements for other authorized PCH&T, administrative, or accessorial charges. 

C2.6.1.3.4. Reimbusement for packing, crating, 

handling, and transportation shall not be provided for materiel returns to DLA industrial sites under BRAC SS&D/IMSP, or NIMS sites7. Refer to C2.2.2.4.  C2.6.2. GSA Shipments  C2.6.2.1. General. GSA shall assess accessorial and administrative costs on shipments to the Department of Defense as indicated in this section.  C2.6.2.2. Transportation Charges  C2.6.2.2.1. Paid By GSA. GSA shall pay transportation charges on stock items to:  C2.6.2.2.1.1. Consignees in the CONUS, and, where scheduled, surface commercial transportation services are available in Hawaii, the Commonwealth of Puerto Rico, the Virgin Islands, the southeast peninsula of Alaska, central Alaska (rail belt), and Kodiak Island.  C2.6.2.2.1.2. A U.S. port of embarkation for overseas destinations not included in subparagraph C2.6.2.2.1.1. 7 DLA is required to request approval of new procedures supporting BRAC/NIMS allowing full materiel credit for returns regardless of asset position with no credit for PCH&T. 
 Page 20 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.6.2.2.2. Paid By Customer. GSA shall not pay transportation charges for shipments of special order program (nonstock) items, purchased free on board (FOB) origin. GSA will, however, prepay and bill the agency, as a separate item, for:  C2.6.2.2.2.1. Transportation charges to a CONUS destination or a U.S. Port of Embarkation on items F.O.B. origin.  C2.6.2.2.2.2. Transportation charges from a CONUS destination or a U.S. Port of Embarkation to consignees in Hawaii, the Commonwealth of Puerto Rico, the Virgin Islands, the Southeast Peninsula of Alaska, Central Alaska (rail belt), and Kodiak Island.  C2.6.2.2.2.3. Transportation charges billed under interfund procedures shall be billed using the Accessorial and Other Miscellaneous Billings (DI code FN_) record.  C2.6.2.3. Export Charges  C2.6.2.3.1. Surcharge shall be assessed at the rate of 10 percent of the value of the materiel ordered and shipped to customers overseas from GSA wholesale distribution centers and vendors when unique DoD marking/packing requires the shipment be physically handled by a GSA export packing facility. The export surcharge shall be billed as follows:  C2.6.2.3.2. A flat fee of $5 administrative charge per requisition line shall be assessed for export shipments not physically handled by a GSA export packing facility. 
 Page 21 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.6.2.3.3. The export services performed on shipments for customers overseas may vary by customer locations, commodity, mode of shipment, and other criteria and include: monitoring and expediting delivery to meet required delivery date; over packing and documenting dangerous/hazardous shipments; challenging air eligible shipments; unitizing, consolidating, and palletizing cargo; arranging for seavans to source load cargo and document shipments for delivery to ports of embarkation; and others.  C2.6.2.3.4. Annually, GSA shall review actual costs to perform export services and, as appropriate, propose changes in the above rate for use throughout each fiscal year. The USD(C) shall be advised sufficiently in advance for appropriate program and budget planning. C2.7. BILLING FOR PROGRESS AND ADVANCE PAYMENTS C2.11. BILLING FOR PROGRESS AND ADVANCE 

PAYMENTS 

 C2.7.1. Progress Billings C2.11.1. Progress Billings  C2.7.1.1. Progress payments may be billed via interfund whenever the order received from the customer specifies that progress billings via interfund are authorized. Interfund billings for progress payments shall use a progress payment billing (DI code FU_) record format. Documentation of the agreement by the customer to allow progress billing via interfund may be used in lieu of a specific provision on each order. 

 C2.11.1.1.Purpose. Progress payments may be billed via interfund whenever the order received from the customer specifies that progress billings via interfund are authorized. Documentation of the agreement by the customer to allow progress billing via interfund may be used in lieu of a specific provision on each order. 

 C2.7.1.2. Billings made for progress payments shall be based upon documentary evidence of satisfactory performance and must not exceed the amount of the customer order. 

 C2.11.1.2. Billing Basis. Billings made for progress payments will be based upon documentary evidence of satisfactory performance and shall not exceed the amount of the customer order. 
 Page 22 Enclosure (2), Comparison Chart of Chapter 2

DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.7.1.3. The billing office shall offset bills for deliveries against all outstanding progress billings related to those deliveries. Billing records shall be reported for both the full value of the shipment (i.e., Billing for Issue from Stock (DI code FA1)) and the amount of the progress billing being liquidated. The billing method elected for the progress payment must also be the method used to bill for delivery. 

 C2.11.1.3. Offsets. The billing office shall offset billing lines for deliveries against all outstanding progress billings related to those deliveries. Billing lines shall be reported for both the sales price of the shipment and the amount of the progress billing being liquidated. The billing method elected for the progress payment will also be the method used to invoice for the delivery. 

 C2.7.1.4. Although multiple progress bills may have been submitted against an order, a single recoupment billing record may be reported for the total amount of the progress billings. 

 C2.11.1.4. Multiple Progress Billings. Although multiple progress billings may have been submitted against an order, a single recoupment billing may be reported for the total amount of the progress billings. 

 C2.7.2. Advance Billing. Advance billings may not be billed via interfund. When authorized, advance funding shall be satisfied via noninterfund and by use of appropriation level, rather than project or order level advances. 

 C2.11.2. Advance Billings  C2.11.2.1. Applicability. Advance billings may not be billed via interfund. When authorized, advance funding will be satisfied via noninterfund and by the use of appropriation level, rather than project or order level, advances.  C2.11.2.2. Application of Advances. Advances received must be returned or applied to accounts receivable before the end of the fiscal year. 

C2.8. INTO-PLANE FUEL SALES C2.6. INTO-PLANE  C2.8.1. These procedures apply to DoD into-plane issues (sales) of fuels to DoD aircraft. 

 C2.6.1. Applicability. These procedures apply to DoD intoplane issues (sales) of fuels to DoD aircraft except when other billing procedures are specified by the terms of an inter-Service support agreement. 
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DoD 4000.25-7-M (MILSBILLS) DoD 4000.25-M, Volume 5, Finance 

 C2.8.2. Reimbursable issues (sales) of fuel into DoD planes by DoD activities shall be billed at the standard price in effect at the time of issue. Contractor into-plane fuel issue shall be billed at the standard price applicable to each such issue. 

 C2.6.2. Reimbursable Issues. Reimbursable issues (sales) of fuel into DoD planes by DoD activities shall be billed at the standard price in effect at the time of issue.  C2.6.3. Contractor Fuel Issues. Contractor into-plane fuel issues shall be billed at the standard price applicable to each such issue. 

 C2.8.3. Billing offices must grant credit for DoD aircraft defueling based on supply defueling slips at Defense Working Capital Fund (DWCF) prices. Credits shall be given for contractor into-plane defueling DoD aircraft based on a defueling slip at the standard price given for each defueling. 

 C2.6.4. DWCF Billing. DWCF Billing offices funded by the DWCF will grant credit for DoD aircraft defueling based on supply defueling slips at DWCF prices.  C2.6.5. Credits. Credits shall be given for contractor intoplane defueling of DoD aircraft based on a defueling slip at the standard price given for each defueling. 

 C2.8.4. Into-plane fuel bills shall use the Billing for Into-Plane Issues (DI code FP_ ) record format. C2.9. HAZARDOUS WASTE AND MATERIELS DISPOSAL SERVICES 

C2.10. HAZARDOUS MATERIEL AND WASTE BILLINGS. Users of DLA's hazardous materiel and waste disposal services shall provide DLA with a disposal turn-in document (DD Form 1348-1A, “Issue Releases/Receipt Document,” or 1348-2, “Issue Release/Receipt Document with Address Label”) as prescribed by DLM 4000.25. Since these services are provided on a reimbursable basis, the order will be funded in accordance with the standards prescribed by DoD 7000.14-R. The order will generally authorize DLA to use the interfund billing system to reimburse themselves for these services. 

 C2.9.1 General88 The “background” information in this subsection is provided to assist financial personnel in understanding their responsibilities with regard to hazardous waste and materiel disposal services. Any conflicts between information contained in this subsection and procedures prescribed by MILSTRIP or DoD 4160.21-M will be resolved by following MILSTRIP. 
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 C2.9.1.1. General policies and procedures governing hazardous materiels and waste disposal within the Department of Defense are prescribed by DoD 4160.21-M. DLA Disposition Services (formerly the Defense Reutilization and Marketing Service) is authorized to bill for these services under interfund billing procedures and shall use the Billing For Decentralized, Noncatalogued, and Nonstocked Items (DI code FC_) billing record.  C2.9.1.2 When generators requestors of services want to dispose of hazardous waste and materiels, they shall follow the procedures in DoD 4160.21-M and Chapters 3 and 5 of DLM 4000.25-1. These procedures require preparation of a disposal turnin document (DTID) in accordance with instructions prescribed by MILSTRIP9 and provide it to the DLA Disposition Services Field Office (formerly Defense Reutilization and Marketing Office (DRMO)). The DLA Disposition Services Field Office shall provide the generator with a receipt copy of the DTID at the time of turn-in.  C2.9.2. Hazardous Waste Disposal  C2.9.2.1. Hazardous waste disposal services are provided on a reimbursable basis and generators must, therefore, contact their servicing finance office to ensure that funds are obligated for these services. Prior to actual turn-in and disposal, the cost of hazardous waste disposal services may be estimated by referring to the contract governing the materiel being disposed of. The estimated cost of the disposal must be obligated under the DTID number. Contact the DLA Disposition Services Field Office for assistance in estimating the cost. 9 Appendix 3.49 Transfers To DLA Disposition Services Field Office on DD Form 1348-1a Issue Release/Receipt Document, or DD Form 1348-2, Issue Release/Receipt Documents With Address Label. 
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 C.2.9.2.2. The DLA Disposition Services Field Office shall provide the generator with copies of the disposal manifest (DD Form 1155) and any modifications as the disposal request is executed and modifications are agreed to. The DLA Disposition Services Field Office shall also provide the generator with a certified copy of disposal for each DTID. Generators must advise their servicing finance office when estimated amounts obligated at the time of turn-in or execution are less than actual amounts indicated on these documents.  C2.9.2.3. Establishing an obligation for the proper amount under the DTID document number is essential for the timely and automated processing of interfund charges. Failure to do so is a violation of financial management procedures and shall delay updating generator accounts and increase workload on both DFAS and generator personnel.  C2.9.3. Hazardous Materiel Disposal  C2.9.3.1. Unlike hazardous waste, disposal of hazardous materiels may not result in any charges to the generator. Therefore, unless you are certain you will incur disposal charges, generators should not obligate turn-ins of hazardous materiels. After receipt of the hazardous materiels DTID, the DLA Disposition Services Field Office must advise the generator if disposal costs that are the responsibility of the generator will be incurred. The following determines whether or not the generator shall be charged for disposal of hazardous materiels.  C2.9.3.2. There shall be no disposal costs charged to the generator if the DLA Disposition Services Field Office can dispose of the hazardous materiel through an existing contract or believes the materiel can be reutilized, transferred, donated or sold.  C2.9.3.2.1. DLA Disposition Services Field Officesshall provide the generator with a monthly Disposal Funding Status Report of the DTIDs that were successfully reutilized. 
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 C2.9.3.2.2. Generators who have open hazardous materiel disposals in process shall contact the DLA Disposition Services Field Office if they fail to receive a monthly Disposal Funding Status Report.  C2.9.4. When the preceding condition does not apply, the hazardous materiel becomes hazardous waste, the disposal shall be done on a reimbursable basis, and hazardous waste disposal procedures apply. Funding for this hazardous waste disposal must be provided to the DLA Disposition Services Field Office within 5 workdays of notification. The DLA Disposition Services Field Office must not proceed with the disposal of the now classified hazardous waste until funding is confirmed by the generator. 

C2.8. OPTIONAL BILLING PROCEDURE: FRESH FRUITS AND VEGETABLES (FF&V) C2.8.1. Summarizing Defense Logistics Agency (DLA) Billing. DoD Components and participating Agencies may elect to have DLA Troop Support's Defense Personnel Support Centersummarize billings for fresh fruit and vegetables (FF&V). The option is available on a DoD Component or Agency-wide basis only. Currently, only the Air Force has elected this billing option.  C2.8.2. Optional FF&V. Under the optional FF&V billing procedure, DLA will summarize onto a single billing line all FF&V issues to a Service or Agency. The billings will be summarized by requisition month and fiscal year. These summarized billings will be forwarded to a predesignated central office in that DoD Component. DLA shall provide supporting detail issue data on request. 

C2.10. GSA UNIQUE BILLINGS  C2.10.1. Automotive Vehicles 
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 C2.10.1.1. GSA is authorized to use the interfund billing system to bill DoD activities for automotive vehicles purchased under a category one (reimbursable) military interdepartmental purchase request (MIPR). DoD activities submitting MIPRs must do so in accordance with paragraph 8.7008 of the DoD Supplement to the Federal Acquisition Regulation (reference (r)), which requires activities to provide MILSTRIP requisition data for each line item to be delivered to each ship-to address. 

C2.7. AUTOMOTIVE VEHICLES. GSA is authorized to use the interfund billing system to invoice DoD activities for automotive vehicles purchased under a category one (reimbursable) Military Interdepartmental Procurement Requests (MIPR). DoD activities submitting MIPRs must do so in accordance with paragraph 8.7008 of the DoD Supplement to the Federal Acquisition Regulation which requires activities to provide DLMS requisition data for each line-item which is to be delivered to each ship-to address. 

 C2.10.1.2. For purposes of identifying and validating charges, GSA shall support interfund billings for automotive vehicles with a single line item billing register. The register must show, in addition to the information shown on the billing record, the last five digits of the full MIPR number under the columns headed "STOCK NUMBERDIST CD PROJ CD.”  C2.10.2. GSA Customer Supply Center Billing Procedures  C2.10.2.1. GSA bills DoD customers for Customer Supply Center (CSC) billings using either a customer provided MILSTRIP document number or a constructed pseudo-document number. The document number is constructed from the ordering DoDAAC of the customer provided at the time the account was opened, the Julian day the order was placed, and the last four positions of the ticket number. GSA shall treat all line items requisitioned as a single order, with or without multiple line items, and bill for the order under the constructed document number if the customer doesn't provide a MILSTRIP document.  C2.10.2.2. GSA CSC interfund bills shall be supported by the GSA CSC Billing (DLMS 810L/DIC FG_) record. 
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 C2.10.2.3. Noninterfund bills shall be supported by the Single Line Item Billing Register. The register must include the customer provided MILSTRIP document number in the stock number field.  C2.10.2.4. GSA also offers its customers the option of having its CSC billings billed to a Government purchase card. Activities having difficulties with interfund or SF 1080 billings of CSC supplies may want to use this option. C2.11. ARMY EXCHANGE PRICING PROCESS. C2.15. ARMY EXCHANGE PRICING PROCESS  C2.11.1. The Army approach to the Exchange Pricing (EP) interim approach is a multi system functionality implementation. EP employs a dual pricing system for repairable National Stock Numbered items based upon Standard Price (latest acquisition cost plus recovery rate) and EP (latest repair cost plus cost recovery rate) and a “buy one – return one” relationship with the customer. That is, a qualified exchange pricing customer buys at the EP and pays a pays a penalty if a reparable is not turned-in within a specified period of time from the issue date. This process is applicable to the Army customers and Army-managed material only; other Services will continue to pay Standard Price and receive 65% credit exchange upon receipt of carcass by the Army PICA. 

 C2.15.1. The Army approach to the Exchange Pricing (EP) interim approach is a multi-system functionality implementation. EP employs a dual pricing system for a repairable National Stock Numbered item based upon Standard Price (latest acquisition cost plus recovery rate) and EP (latest repair cost plus cost recovery rate) and a “buy one – return one” relationship with the customer. That is, a qualified exchange pricing customer buys at the EP and pays a penalty if a reparable is not turned-in within a specified period of time from the issue date. This process is applicable to the Army customers and Army-managed materiel only; other Services will continue to pay Standard Price and receive 65% credit exchange upon receipt of carcass by the Army PICA. 

 C2.11.2. Once an item of supply is identified for a national repair program and the National Item Identification Number has an established Exchange Price, all requisitions for the items will be priced at the Exchange Price if the customer is an authorized EP customer. 

 C2.15.2. Once an item of supply is identified for a national repair program and the National Item Identification Number has an established Exchange Price, all requisitions for the items will be priced at the Exchange Price if the customer is an authorized EP customer. 
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 C2.11.3. When a requisition submitted to the Supply Support Activity (SSA) is processed by the Standard Army Retail Supply System (SARSS), SARSS will determine if the customer DoDAAC is an EP customer and the NIIN has an established EP indicator. As this transaction is processed through the Army supply system, middleware, Funds Control Module (including EP Tracking) Defense Automatic Addressing System (DAAS), Commodity Control Supply System (CCSS), and Army Logistics Modernization Program (LMP), the EP indicator will be used to identify the transaction as EP related. All the legacy systems will continue processing the MILS transactions, LMP will process Defense Logistics Management System (DLMS) transactions that are converted by DLA Transaction Services. 

 C2.15.3. When a requisition submitted to the Supply Support Activity (SSA) is processed by the Standard Army Retail Supply System (SARSS), SARSS will determine if both the customer DoDAAC is an EP customer, and the NIIN has an established EP indicator. As this transaction is processed through the Army supply system, middleware, Funds Control Module (including EP Tracking) Defense Automatic Addressing System (DAAS), Commodity Control Supply System (CCSS), and Army Logistics Modernization Program (LMP), the EP indicator will be used to identify the transaction as EP related. All the legacy systems will continue processing the MILS transactions, LMP will process DLMS transactions that are converted by DLA Transaction Services. 

 C2.11.4. All related supply transactions prepared by the Army will carry and perpetuate the EP Indicator. As a result of the EP implementation the following transactions will be impacted: Requisition; Requisition Modifier; Requisition Followup; Materiel Release Order; and Supply Status. The returns process will also process EP related transactions. The Materiel Receipt transaction will be generated by SARSS for all returns of EP NIINs, and will include an EP Type of Credit indicator for Unserviceable credit when applicable, as well as an EP Conversion Indicator to identify the need to provide credit according to the pre-EP credit policy, which will last for 60 calendar days following the implementation of EP. 

 C2.15.4. All related supply transactions prepared by the Army will carry and perpetuate the EP Indicator. As a result of the EP implementation the following transactions will be impacted: Requisition; Requisition Modifier; Requisition Follow-up; Materiel Release Order; and Supply Status. The returns process will also process EP related transactions. The Materiel Receipt transaction will be generated by SARSS for all returns of EP NIINs, and will include an EP Type of Credit indicator for Unserviceable credit when applicable, as well as an EP Conversion Indicator to identify the need to provide credit according to the pre-EP credit policy, which will last for 60 calendar days following the implementation of EP. 
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 C2.11.5. If the return is in an un-repairable condition code or the item is not returned within the established timeframe (Delta Delay Days), the National Level systems (i.e. LMP, CCSS) will create an obligation adjustment based on the receipt from Middleware Funds Control Module of a Materiel Returns Supply Status (Delta Bill Trigger) transaction. As a result of processing the delta bill trigger the national systems will create the logistics/interfund bill transaction with an EP Indicator and Type Bill code to identify the specific type of EP bill to the Army financial system. 

 C2.15.5. If the return is in an un-repairable condition code or the item is not returned within the established timeframe (Delta Delay Days), the National Level systems (LMP, CCSS) will create an obligation adjustment based on the receipt from Middleware Funds Control Module of a Materiel Returns Supply Status (Delta Bill Trigger) transaction. As a result of processing the delta bill trigger the national systems will create the logistics/interfund bill transaction with an EP Indicator and Type Bill code to identify the specific type of EP bill to the Army financial system. 

C2.12. NAVY EXCHANGE PRICING PROCESS. C2.16. NAVY EXCHANGE PRICING PROCESS.  C2.12.1. Navy uses a two-tier pricing system for selling Depot Level Repairable material to Navy customers. The Navy sells DLRs to other Services at full (standard) price and then provides carcass value credit when the carcass is returned. This is the same method the Air Force and Army use when selling repairable items to the Navy. The Standard Price is the price representing the full value of the DLR item, and is price charged when a Not Ready For Issue (NRFI) unit (also referred to as a ‘Carcass’) is not turned in. The Net Price (also referred to as Exchange Price) is the price that represents the cost of repairing a DLR item, and is the price charged to customers when a NRFI unit has been or will be turned in. Navy customers indicate on their requisitions whether or not a NRFI unit is available for turn in via the Advice Code, and they are then charged Net or Standard Price accordingly. 

 C2.16.1. Navy uses a two-tier pricing system for selling Depot Level Repairable (DLR) material to Navy customers. The Navy sells DLRs to other Services at full (standard) price and then provides carcass value credit when the carcass is returned. This is the same method the Air Force and Army use when selling repairable items to the Navy. The Standard Price is the price representing the full value of the DLR item, and is price charged when a Not Ready For Issue (NRFI) unit (also referred to as a ‘Carcass’) is not turned in. The Net Price (also referred to as Exchange Price) is the price that represents the cost of repairing a DLR item, and is the price charged to customers when a NRFI unit has been or will be turned in. Navy customers indicate on their requisitions whether or not a NRFI unit is available for turn in via the Advice Code, and they are then charged Net or Standard Price accordingly. 
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 C2.12.2. Requisitions received indicating that a carcass will be returned are tracked in the Navy’s Carcass Tracking System. This system monitors these requisitions and matches them with carcass returns as they occur. This system also generates follow ups to customers who have not returned their carcasses as promised. Ultimately, the system will trigger an additional charge to the customer if the carcass is not returned. Navy uses the term Carcass Charge for this additional billing which represents the value between Standard Price and Net (Exchange) Price. This additional billing is also referred to as a Delta Bill. If the customer returns the carcass after receiving the Carcass (Delta) Bill, then the additional billing is reversed, resulting in a Carcass Charge Reversal (Credit Delta Bill). Navy customers may also return excess DLRs for credit. The credit can be Standard, Net or Carcass value. 

 C2.16.2. Requisitions received indicating that a carcass will be returned are tracked in the Navy’s Carcass Tracking System. This system monitors these requisitions and matches them with carcass returns as they occur. This system also generates follow ups to customers who have not returned their carcasses as promised. Ultimately, the system will trigger an additional charge to the customer if the carcass is not returned. Navy uses the term Carcass Charge for this additional billing which represents the value between Standard Price and Net (Exchange) Price. This additional billing is also referred to as a Delta Bill. If the customer returns the carcass after receiving the Carcass (Delta) Bill, then the additional billing is reversed, resulting in a Carcass Charge Reversal (Credit Delta Bill). Navy customers may also return excess DLRs for credit. The credit can be Standard, Net or Carcass value. 

 C2.12.3. Under DLSS/MILSBILLS billing, the Navy ICP’s use the Sales Price Condition Code to indicate to customers that a particular bill is either Net (Exchange) Price or Carcass (Delta) Price. Once operational, Navy’s ERP will replace the Navy ICP’s DLSS/MILSBILLS billing system with a DLMS based system. Since DLMS does not utilize a Sales Price Condition Code, Navy will use a combination of Stock Exchange Code and Type of Bill Code to indicate on the bill that the price charged is either Standard, Net or Carcass price. The Defense Automated Address System (DAAS) will convert Navy DLMS bills back to DLSS/MILSBILLS format for any Navy customers unable to accept DLMS formats. 

 C2.16.3. Under Defense Logistics Stanard Systems (DLSS)/MILSBILLS billing, the Navy ICP’s use the Sales Price Condition Code to indicate to customers that a particular bill is either Net (Exchange) Price or Carcass (Delta) Price. Once operational, Navy’s ERP will replace the Navy ICP’s DLSS/Military Standard Billing System (MILSBILLS) billing system with a DLMS based system. Since DLMS does not utilize a Sales Price Condition Code, Navy will use a combination of Stock Exchange Code and Type of Bill Code to indicate on the bill that the price charged is either Standard, Net or Carcass price. The Defense Automated Address System (DAAS) will convert Navy bills back to DLSS/MILSBILLS format for any Navy customers unable to accept DLMS formats. 
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C2.17. INCLUSION OF TRANSPORTATION CONTROL NUMBERS (TCN) ON DLMS LOGISTICS BILLS. Suppliers may bill on partial shipments with identical quantities under the same document number, which makes the bills appear as duplicates. Including the TCN on the DLMS Logistics Bill will resolve that problem. Partial shipment codes are part of the TCN structure in accordance with DTR 4500.9-R. Accordingly, reporting activities shall include the TCN in DLMS Logistics Bill transactions. This is a DLMS enhancement, which may be implemented without prior authorization. 

. 
 Page 1 Enclosure (3), Comparison Chart of Chapter 4

Description of Enclosure 2 Layout 

This enclosure is the table used to compare the equivalent procedures between DOD 4000.25-7-M (MILSBILLS) and DOD 4000.25-M, Volume 5, Finance. The first column is follows the organization of DOD 4000.25-M, Volume 5. The second column 

maps content from MILSBILLS for comparison to the DOD 4000.25-M, Volume 5 language. In assessing how to best merge the procedures of the two manuals, the content of the table was assigned to one of three categories. The content was highlighted with a color according to the recommended category. 

 Green highlighted text indicates the final text for the merged chapter and is included in Enclosure 1. A few procedures have a 

comment in the right margin that sought verification of the procedure from a specific FPRC representative. 

 Grey highlighted text indicates the text was recommended to be passed over in favor of the equivalent green highlighted text.  Blue highlighted text indicates: 

1) MILSBILLS text not be merged even though there is no equivalent language in DOD 4000.25-M, Volume 5, Chapter 4, 

or 

2) DOD 4000.25-M, Volume 5 text recommended for deletion as part of PDC 493. 3) Questionable text which sought comment from components during PDC 493 staffing. 

A comment in the right margin accompanies each blue highlighted text to indicate why the text is highlighted blue. 

 In addition, Yellow highlighted, bold, italicized text indicates changes made since the staffing of PDC 493. 
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C4. CHAPTER 4 C4. CHAPTER 4 

DLMS BILLING ADJUSTMENTS ADJUSTMENT PROCEDURES 

C4.1. GENERAL  C4.1.2. Submission of Adjustment Requests and Replies  C4.1.2.1. Unless otherwise indicated in this chapter, requests for adjustment, follow-ups, and replies shall be submitted by electronic means. 

C4.1. REQUESTING ADJUSTMENTS. Offices desiring adjustment of DLMS billings shall request adjustment of these bills using the DS to Federal IC 812R, Adjustment Request. The DS will also be used to cancel or follow-up on adjustment requests. 

 C4.1.2.3. Requests are generally prepared using the Request for Billing Adjustment (DS 812R, DI code FAE) record. However, into-plane and bulk fuel related adjustment requests must use the Request For Adjustment of Fuel Billing (DS 812 R, DI code FJE). Refer to other Chapter 4 sections for more specific information on preparing requests for adjustments and follow-ups. 
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 C4.1.1. Submission  C4.1.1.1.Adjustment. All requests for adjustments shall be forwarded to the billing office except as noted in this section.  C4.1.1.3. Requests For Adjustment. Requests for adjustments of GSA billings shall be forwarded to the GSA Customer Service Center DoDAAC "4764370000"). 

 C4.1.2.2. Requests for adjustments will normally indicate the billing office as the addressee and shall be submitted to DLA Transaction Services for processing and routing to the billing office. Requests for adjustments of GSA billings shall be addressed to the GSA National Customer Service Center (RI code “GSA”). Correspondence to the Service Center, if necessary, may be directed to:  General Services Administration  National Customer Service Center  1500 East Bannister Road  Kansas City, Missouri 64131-3087  Telephone: (800) 488-3111 (DSN) 465-1416  C4.2.6.3. Nonreimbursable. Forward a request for adjustment in the format prescribed for BAC “14" when the coding of the requisition indicates that the materiel was requisitioned under nonreimbursable procedures and a materiel billing was received.  C4.2.6.4. Accessorial. A request for adjustment in the format prescribed for BAC “15" shall be forwarded whenever accessorial costs are charged and the charges are not authorized. 
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 C4.1.2. Timeframes. All requests for adjustments should be submitted within 30 calendar days of receipt of the billing. Initial requests for adjustment received after the record retention period for billing records may be denied. When a discrepancy report or adjustment request is received within prescribed timeframes, nonavailability of records, or the passing of the record by the time the report is validated, or the request is processed, may not be used as a basis for denying the adjustment. 

 C4.5.3.2. Initial requests for adjustment received by the billing office after the record retention period for billing records may be denied. 
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 C4.1.3. Minimum Value C4.1.3.1. Adjustment for Billing Errors. In general, no request for adjustment should be submitted for billing errors when the amount of the error is $250 or less. As an exception to the general guideline, no request for adjustment should be submitted for billing errors when the amount of the error is $100 or less and the billing office is GSA or the materiel involved is a subsistence item.  C4.1.3.2. Adjustment Types. There is no minimum value for requesting status on an anticipated or required billing, requesting a corrected bill when the bill received is incomplete, requesting a copy of a bill, requesting a change in the type of billing (interfund to noninterfund and noninterfund to interfund), or requesting adjustments for validated discrepancy reports.  C4.1.3.3. FMS Billing Errors. There is no minimum value for adjustment of FMS billing errors. However, adjustment requests for foreign military sales (FMS) shipments may not be submitted when the request can be rejected per the general conditions of the U.S. Department of Defense Letter of Offer and Acceptance. 

 C4.1.1. Minimum Value for Adjustment. There is no minimum financial dollar value for requesting or processing billing adjustments or refunds. 
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C4.2. CANCELING OR AMENDING REQUESTS FOR ADJUSTMENT  C4.2.1. Canceling Requests. Submitting offices may cancel requests for adjustments whenever the request is no longer valid or appropriate and the billing office has not provided a final reply to the request.  C4.2.2. Amendments. Requests for adjustments may be amended by canceling the original request and submitting a new request. 

C4.3. CANCELING REQUESTS FOR ADJUSTMENT1. Submitting offices may, at their option, cancel requests for adjustments (using DI codes FAC, FDC, or FJC record formats, as appropriate) whenever the request is no longer necessary, invalid, or inappropriate and the billing office has not responded to the request. Adjustment processing activities may choose to not accept, process, or respond to these cancellation requests. 

C4.3. FOLLOW-UP ON UNANSWERED REQUESTS FOR ADJUSTMENT 

C4.4. FOLLOW-UP ON REQUESTS FOR ADJUSTMENT 

C4.3.1. Adjustment Requests. Except for follow-ups to DLA Transaction Services, offices submitting adjustment requests will follow-up on requests for adjustments remaining unanswered for more than 1445 calendar days after submission. If the request for adjustment remains unanswered for more than 1430calendar days after follow-up, submitting offices will forward a second and final follow-up by letter or message to the billing office. In addition to providing the billing office with the information required to process the request, the final follow-up will also identify the dates of initial and follow-up request. 

 C4.4.1. First Follow-Up  C4.4.1.1. Offices submitting adjustment requests shall follow up on requests for adjustments (DI code FAF, FDF, or FJF) that remain unanswered for more than 14 calendar days after submission.  C4.4.2. Second Follow-Up  C4.4.2.1. When the initial follow-up remains unanswered for more than 14 calendar days, submitting offices shall forward a second and final follow-up by letter or message to the billing office. In addition to providing the billing office with the information required to process the request, the final follow-up shall also identify the dates of initial and follow-up request. 

1 The requirement to generate or process cancellation-related adjustment documents is effectively ended and should not be incorporated in new 

or revised systems. However, these optional provisions are required to allow activities to remain in compliance with MILSBILLS without having to make programming changes to terminate the adjustment cancellation process in legacy systems.
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 C4.4.2.2. Follow the procedures prescribed for noncompliance and other problems (see Chapter 1) when requests for adjustments or requests for MRP credits remain unanswered for more than 14 calendar days after the second follow-up or if an interim response was received and the date promised has passed. 

 C4.3.2. Copies of Bills. Follow-up to DLA Transaction Services for copies of bills, if needed, will be by letter or message. Follow-up to DLA Transaction Services may begin 7 calendar days after the request is submitted. 

 C4.4.1.3. Follow up to DLA Transaction Services(daashelp@daas.dla.mil) for copies of interfund bills requested but not received. 

 C4.3.3. Credit Follow-Up. Offices designated to receive Materiel Returns Program (MRP) credit will initially follow-up on the credit due when the credit has not been received and more than 3060 calendar days have elapsed since the creditable status was received. A second follow-up will be submitted if a reply or credit is not received within 3060 calendar days of the initial follow-up. 

 C4.4.1.2. Offices promised MRP or procurement offset credit shall follow up by submitting a second DI code FTP record when the credit is not received within 30 calendar days of the initial request. 

C4.4. REPLYING TO REQUESTS FOR ADJUSTMENT OR MRP CREDIT C4.4.1. Processing Adjustments. Billing or adjustment processing offices will reply to adjustment requests using DLMS Supplement (DS) 812L, Adjustment Request Reply. The DS will also be used to reply to follow-up requests. 

C4.5 PROCESSING REQUESTS FOR ADJUSTMENT  C4.5.1. Replies to Requests and Follow-Ups  C4.5.1.1. Billing offices shall respond to all requests for adjustment within 15 calendar days of the date the request is submitted. 
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C4.4.2. Responding to Requests. Billing offices shall respond to all requests for adjustment within 1330 calendar days of the date the request is received. Billing offices shall respond to follow-up requests for adjustment within 1321 calendar days of the date the request is submitted. All adjustment replies shall include an appropriate coded reply. 

 C4.5.1.2. Billing offices shall respond to all first follow-up requests for adjustment and MRP credits within 15 calendar days of the date the request is received and respond in the DI code FAS, FDS FJS or FTB format. C4.1.2.4. Replies to adjustment requests (DS 812L, DI code FAR) and follow-ups (DS 812L, DI code FAS) are required and shall also be forwarded to DLA Transaction Services for processing and further routing to the adjustment requestor. As with the requests, fuel-related replies shall follow the equivalent DI code FJ_ series formats. 

C4.4.3. Response to Requesting Offices. All responses to adjustment requests will be forwarded to the office submitting the request and parties identified to receive status. Adjustments will be forwarded to the office originally billed. 

 C4.5.3.1. Responses to adjustment requests shall be forwarded to the office designated by the recipient of billing status code. Adjustments shall be forwarded to the original billed office.  C4.5.1.3. Billing offices shall respond to initial requests and first follow-up for MRP credit in the 812L / DI code FTB format. Responses shall be forwarded, via DSN, to the office designated by the materiel receipt status (870M, DI code FTZ).  C4.5.1.5. Billing offices shall respond to second follow-up requests for adjustments and MRP credit within 730calendar days of receipt. If the request cannot be answered within 730 calendar days, an interim response by letter or message will be provided. The response must be completed within 360 calendar days. 

C4.5. ADJUSTMENT AMOUNT. In general, adjustments, when warranted, will be at the price originally billed. Adjustments for validated produrct quality deficiency reports (PQDRs) will be 

 C4.5.2. Adjustment Amount. As a general rule, adjustments will be processed at the price originally billed. The following are exceptions: 
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processed at the current standard price when the original price billed cannot be determined. Adjustments for Material Returns Program (MRP) credits will be at the current acquisition price or at a reduced price if, in the opinion of the Integrated Materiel Manager (IMM), the condition warrants such reduction. 

 C4.5.2.1. Adjustments, for validated PQDRs, shall be processed at the current standard price when the original price cannot be determined; that is, the PQDR cannot be identified to a specific requisition.  C4.5.2.2. MRP credits for other than lateral redistributions shall be processed at the acquisition cost in effect at the time of receipt. MRP credits for materiel laterally redistributed shall be processed at the standard price in effect at the time of shipment. Credits for materiel returned or laterally redistributed may be less than acquisition or standard price if, in the opinion of the IMM, the condition warrants such reduction. 

C4.6. UNSATISFACTORY BILL PROCEDURES. An unsatisfactory DLMS bill is a bill which cannot be processed. For example, the total amount is not fully supported by billing details or the bill does not include essential information required by DLMS billing implementation conventions. Bill-to parties will use the TS 997 IC, Functional Acknowledgment, to reject improper bills back to the billing office. See volume 1, chapter 6, and DLMS appendix 6 for the IC for the Functional Acknowledgment transaction set. 

 C4.2.2. Incomplete or Unsupported Bill  C4.2.2.1. An incomplete bill is one in which the bill, either interfund or noninterfund, is not fully supported by detail billing records or information, respectively.  C4.2.2.2. Since DLA Transaction Services will not pass incomplete interfund bills to billed offices and billing offices will not be reimbursed for bills not submitted to DLA Transaction Services, a copy of the “incomplete” interfund bill shall be requested from DLA Transaction Services.  C4.2.2.3. Requests for incomplete (that is unsupported) noninterfund bills shall be addressed to the billing office and must cite billing account code (BAC) “19”. In addition to responding to the request, whenever the bill referred to is on file, billing offices must always provide a fully supported copy or corrected bill to the billed office. 
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C4.7. BILLING STATUS PROCEDURES  C4.7.1. Obtaining Bill Status. When requisitioned materiel is received, intended billed offices must use Adjustment Request (DS 812R, DIC FAE) to seek the status of the bill. When materiel was not ordered, or if ordered, not received, discrepancy report procedures apply. See volume 2, C17 and DoD 4500.9-R volume 2, chapter 210 for discrepancy report procedures. 

 C4.2.4. Status of Billing or Credit  C4.2.4.1. Bill Not Received  C4.2.4.1.1. When requisitioned materiel is received and the billing has not been received, intended billed offices must seek the status of the billing by forwarding a request for adjustment citing BAC “34."  C4.2.4.1.2. When materiel received was not requisitioned, or if requisitioned materiel was not received, discrepancy report procedures rather than adjustment procedures apply. Contact the local supply or requisitioning office for appropriate discrepancy procedures. 

 C4.7.2. Shipment Bill Status. When shipment status is received for requisitioned materiel and the materiel can be billed only upon evidence of constructive delivery, intended billed offices must use Adjustment Request,(DS 812R, DI code FAE) to seek the status of the bill. Billing offices may generate the required billing when properly completed requests are received and a billing is awaiting evidence of constructive delivery. Billing offices will also initiate appropriate actions with their supply office to identify and resolve problems underlying this condition. 

 C4.2.4.1.3. When shipment status is received for requisitioned materiel and the materiel can be billed only upon evidence of constructive delivery (see section C2.1), intended billed offices should seek the status of the billing by forwarding a request for adjustment citing BAC “35." Billing offices shall generate the appropriate billing when properly completed requests are received and billing is awaiting evidence of constructive delivery. Billing offices shall also initiate appropriate actions with their supply office to identify and resolve problems associated with this condition. 

 C4.7.3. Timeframe. At least 90 calendar days must have elapsed after receiving the materiel or, in the case of FMS shipments, shipment status before requesting the status of the bill. However, the status must be requested within a year of the date of shipment (2 years for FMS shipments). Billing offices may reject requests for billing status which are not submitted within these timeframes. 

 C4.2.4.1.4. At least 90 calendar days must elapse after receiving the materiel or, in the case of Foreign Military Sales (FMS) shipments, shipment status, before requesting the status of the bill. However, the status must be requested within 1 year of the date of shipment (2 years for FMS shipments). Billing offices shall reject requests for billing status that are not submitted within these timeframes. 
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 C4.2.4.1.5. When the request for billing status involves fuels and is forwarded to the DLA Energy Defense Energy Support Center (DESC) (RI code S9F), the request shall be mailed and must identify the supply source. If the supply source is a DLA EnergyDESC regional location, provide the DoDAAC of the location. If the supply source is a contractor, including contractor into-plane, provide the contract number. 

 C4.7.4. Restrictions. Except for billings awaiting evidence of shipment or receipt, billing offices will not generate bills based solely upon a request for billing status. 

 C4.2.4.1.6. Except for billings awaiting evidence of shipment or receipt, billing offices shall not generate bills based solely upon a request for billing status.  C4.2.4.1.7. DoD 7000.14-R, Volume 10, has allowances for writing off unbilled liabilities and deobligating the related obligation when an invoice has not been received within 180 calendar days from the date of acceptable final performance and there is documentation on file that at least two written requests for an invoice have been made. Refer to the reference for other conditions that must be met, such as establishing a reserve for late bills. 
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C4.8. BILL COPY PROCEDURES  C4.8.1. Requesting Copies. Like other adjustment requests, requests for copies of DLMS bills will be forwarded to the DLA Transaction Services using DS 812R, Adjustment Request.  C4.1.1.2. Copies of Interfund Bills. Requests for copies of interfund bills shall be forwarded to DLA Transaction Services if DLA Transaction Services record retention period has not expired. See Chapter 6 for DLA Transaction Servicesrecord retention requirements.  C4.8.2. Retransmitting Copies. DLA Transaction Services will retransmit a copy of all bills wherein the billing office DoDAAC, bill number, and year within decade and month of credit match the same information on the request. 

C4.8.3. Bill Reversal. Billing offices failing to respond 

to requests for copies of bills, when such requests are received within the record retention period, shall be directed by their Component headquarters to reverse the billing. Billed offices shall absorb all charges, in the manner prescribed by their Service or Agency, when the record retention period has elapsed and they have failed to obtain copies of bills. 

C4.2. PREPARATION OF ADJUSTMENT REQUESTS 

 C4.2.1. Bill Copy  C4.2.1.1. Requests for copies of interfund bills shall be addressed to DLA Transaction Services and must use the Request for Retransmission of Interfund Bill (DS 812R ,DIC QB1) format. See Chapter 6 for additional information and options regarding retrieval of copies of bills.  C4.2.1.2. Requests for copies of noninterfund bills will normally be addressed to the billing office. 
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C4.9. REQUEST FOR CHANGE IN BILLING METHOD. When a billed office is unable to process a DLMS bill (either interfund or noninterfund) under the payment method processed, they may have the item or items billed under the alternative procedure by forwarding DS 812R, Adjustment Request, to the billing office. All such requests, submitted according to the procedures prescribed in this manual, will be honored by the billing office. 

 C4.2.5. Change in Billing Method  C4.2.5.1.1. When billing offices bill under interfund procedures and MILSBILLS procedures do not allow for such billing, billed offices will forward requests for adjustment in the format prescribed for BAC “52."  C4.2.5.1.2. When MILSBILLS procedures prescribe billing under interfund procedures, billing offices shall deny requests for improperly billed interfund.  C4.2.5.1.3. When the requisition or customer asset report improperly designates interfund billing and the interfund billing cannot be processed, refer to the following subparagraph for requesting rebilling under noninterfund procedures  C4.2.5.2. Properly Billed Interfund to Noninterfund  C4.2.5.2.1. When a billed office is unable to process a billing record under interfund procedures, the billed office may have the item or items billed under noninterfund procedures by forwarding a request for billing adjustment citing BAC “51.” Use of this advice code is an admission by the billed office that the requisition or other document was incorrectly coded.  C4.2.5.2.2. Requests citing BAC “51" may be submitted only when the funds or charge involved cannot be disbursed or processed under interfund procedures. All such requests shall be honored by the billing office; the billing office may challenge this assertion. 
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C4.10. ADJUSTMENTS FOR DISCREPANCY REPORTS. Discrepancy reports will be submitted, reviewed, processed, validated, and responded to in accordance with Volume 2. Financial adjustments related to discrepancy reports will be processed in accordance with this manual. 

 C4.2.7. Adjustments for Discrepancy Reports  C4.2.7.1. Discrepancy reports shall be submitted, reviewed, processed, validated, and responded to in accordance with procedures prescribed for the discrepancy in accordance with the following requirements:  Table C4.T1. Adjustments to Discrepancy Reports 

Reporting of Transportation Discrepancies in Shipments, DoD 4

"Defense Transportation Regulation”

Reporting of Supply Discrepancies, DLM 4000.25, Chapter 17Product Quality Deficiency Program, DLAR 4155.24/AR 702-

7/SECNAVINST 4855.5A/AFR 74-6

 C4.10.1. Financial Adjustment  C4.10.1.1. Processing. Billing offices shall process 

financial adjustments without regard to dollar value when the discrepancy report is validated and the following criteria are met: 

 C4.2.7.2. Billing offices shall process financial adjustments or claims citing the applicable Type of Bill Code (QD, WP, WU, or TD) based on the discrepancy report when the discrepancy report is validated and all of the following MILSBILLS or GSA criteria are met: 

 C4.10.1.1.1. Discrepancy Not Otherwise Resolved. The discrepancy was not resolved otherwise; i.e., the vendor does not replace deficient materiel for a validated PQDR. 

 C4.2.7.2.1. The discrepancy was not resolved otherwise; e.g., the vendor does not replace deficient materiel for a validated Product Quality Deficiency Report (PQDR). 

 C4.10.1.1.2. Materiel Billed and Paid. The materiel was billed and paid previously or, in the case of reporting on a constructed document number, there is a reasonable basis for assuming the items were billed and paid for previously. 

 C4.2.7.2.2. The materiel was billed and paid previously or, in the case of PQDRs, there is a reasonable basis for assuming the items were billed and paid for previously. 
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 C4.10.1.1.3. Materiel Returned. The materiel is received by the depot in those cases where the discrepancy report reply requires the return. 

 C4.2.7.2.3. The materiel is received by the depot in those cases where the reply to the discrepancy report requires a return.  C4.2.7.2.4. The discrepancy involves GSA shipments and Transportation Discrepancy Report (TDR) exceeds $25 per line (detail billing record) (DBR) or the SDR exceeds $50 per line (DBR). There is no minimum adjustment level on PQDRs involving GSA shipments. There are no adjustment dollar value limitations for discrepancies involving DoD shipments.  C4.2.7.2.5. The original MILSTRIP requisition number is included on the PQDR or SDR. When the original requisition number cannot be identified, the originating or screening point must include a constructed 14-position MILSTRIP document number using the originating or screening point’s DoDAAC for the first six characters, the current Julian date (YDDD) for the next four positions, and a four position serial number beginning with “U” as the first position of the serial number. An example of a constructed document number is F123453175 U001. Also carried as a utilization code under DLMS. Note: For SDRs, circumstances authorizing the use of a constructed document number are restricted to those described in DLMS, chapter 17.  C4.2.7.2.6. The discrepancy report for a GSA shipment is received by GSA, except when extenuating circumstances or high dollar values warrant special consideration, within the following timeframes:  C4.2.7.2.6.1 Within 1 year of the date of shipment for PQDRs except: 
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 C4.2.7.2.6.1.1. For items under warranty that must be received within the time limits prescribed in the individual warranty.  C4.2.7.2.6.1.2. For shelf life items that must be received prior to the expiration of the shelf life period and within 1 year of the date of shipment.  C4.2.7.2.6.2. Within 180 calendar days of the date of shipment for other than quality deficiencies except for:  C4.2.7.2.6.2.1. Shipments for security assistance consignees, that must be received within 18 months of the date of shipment; and  C4.2.4.2.6.2.2. Shipments to consignees located in the CONUS, HAWAII, the Commonwealth of Puerto Rico, the Virgin Islands, the southeast peninsula of Alaska, central Alaska (rail belt), and Kodiak Island, that must be received within 120 calendar days of the date shipment. 

 C4.10.1.2. Improper Commitment. When a reply to a discrepancy report improperly commits the billing office to providing an adjustment; e.g., shipment was never billed, the billing office will ask the replying office to correct the reply to the discrepancy report. 

 C4.2.7.3. When a reply to a discrepancy report improperly commits the billing office to providing an adjustment; e.g., shipment was never billed, the billing office shall ask the replying office to correct the reply to the discrepancy report. 

 C4.10.2. Other Discrepancies Adjustment Rules 
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 C4.10.2.1. Adjusting Transportation Discrepancy Reports. Requests for adjustments related to Transportation Discrepancy Reports (TDRs) will be submitted only when the adjustment is not received and more than 60 calendar days have elapsed since the report was filed. Requests related to PQDRs and SDRs should be timely, but shall not be submitted until a minimum of 60 calendar days have elapsed since receiving notification that the discrepancy is validated; that is, that an adjustment is approved.  C4.10.2.2. Materiel Return Contingency. When the promised adjustment for a discrepancy is contingent upon the return of materiel, the request shall not be submitted until a minimum of 60 calendar days have elapsed since shipping the materiel with additional allowance for transportation time to the shipping activity. When a reply to a discrepancy report is not received, follow up as prescribed by Volume 2. 

 C4.2.7.4. Requests for adjustments related to TDRs (BAC “21") shall be submitted only when the adjustment is not received more than 60 calendar days after the report was filed.  C4.2.7.5. Requests related to PQDR (BAC “24") and SDRs (BAC “26") shall be submitted within 30 calendar days after receiving notification that the discrepancy is validated; that is, that an adjustment is approved. When the adjustment is contingent upon the return (and receipt) of materiel, the request shall be submitted no sooner than 45 calendar days after the return shipment.  C4.2.7.6. The portion of credits for materiel laterally redistributed may be fully or partially reversed by the IMM when a discrepancy report documents the materiel was not shipped in a condition warranting full credit. 
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 C4.2.7.7. Activities responsible for discrepant shipments may be held responsible for costs incurred for repackaging, disposal, and similar costs for unauthorized returns, deficient packaging, and other item and packaging discrepancies that have been documented and validated under SDR procedures. Although other, mutually agreeable arrangements may be made, such costs shall normally be recovered under noninterfund procedures and will be supported by the validated discrepancy report. In addition, when such returns are creditable, these discrepancy costs may be offset against the credit to which the returning activity is otherwise entitled.  C4.2.7.8. Adjustments based upon PQDRs shall be forwarded to the code and bill-to DoDAAC indicated on the PQDR. If omitted, adjustments shall be sent to the DoDAAC indicated (TAC 3, or TAC 1 if no TAC 3 exists) of the requisition number provided on the PQDR and the following fund code: 

Table C4.T2. Default PQDR Fund Codes

Billed Service Code Fund Code N, P, R, or V (Navy) 96 All Others QD 
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C4.11. ADJUSTMENTS FOR BILLING ERRORS  C4.11.1. The following are billing errors and shall not be accepted for processing unless the minimum value criterion (Section 4.1) for requesting adjustment is met:  C4.11.1.1. Duplicates  C4.11.1.2. Wrong amount billed  C4.11.1.3. Wrong office billed  C4.11.1.4. Improper billed  C4.11.1.5. Promised adjustment not received  C4.11.1.6. Other problems 

 C4.2.6. Billing Errors 

 C4.11.2. Duplicates C4.2.3. Duplicates 

 C4.2.3.1. Duplicate Billing Line 

 C4.11.2.1. Duplicate Billing Line. A duplicate billing line is a second or later billing for a single shipment or adjustment. If the second or later billing resulted from a second or later shipment, financial adjustment procedures do not apply. See, instead, discrepancy report procedures for duplicate shipments in Volume 2. 

 C4.2.3.1.1. This is a second or subsequent detail billing record for a single shipment or adjustment. If the second or subsequent billing resulted from a second or subsequent shipment, MILSBILLS adjustment procedures do not apply. Refer instead to supply discrepancy report procedures for duplicate shipments.  C4.2.3.1.2. To obtain adjustment for duplicate detail billing records not previously adjusted by the billing office, submit a separate request (DI code FAE or FJE) for each duplicated billing record in the format prescribed for BAC “11." 
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 C4.2.3.2. Duplicate Bill 

 C4.11.2.2. Duplicate Bill. Duplicate bill is a bill which is supported entirely by duplicate billing lines. In the case of interfund bills, the bill is also included on the billing office's interfund report. 

 C4.2.3.2.1. This is a bill, either interfund or noninterfund (SF 1080 or equivalent), wherein the bill is supported entirely by duplicate detail billing records. In the case of interfund bills, the bill is also included on the billing office’s interfund report.  C4.2.3.2.2. Adjustments for duplicate interfund bills may be requested only upon confirmation that the bills (original and duplicate) were, in fact, reported to the buying service’s CAO. To obtain an adjustment, submit a Request For Summary Level Billing Adjustment (DS 812R, DI code FDE) for each duplicated bill citing:  C4.2.3.2.2.1. BAC “42" when the entire bill, details and summary, is identical, including the bill number, to a previous bill,  C4.2.3.2.2.2. BAC “43" when, except for the bill number, the entire bill, details and summary, is identical to a previous bill, and  C4.2.3.2.2.3. BAC “44" when all of the supporting detail billing records of one bill have been included on another bill. The bill containing such previously billed DBRs is the duplicate bill. 

 C4.11.2. Wrong Amount Billed C4.2.6.1. Wrong Amount Billed 
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 C4.11.2.1. Purpose. A wrong amount billed refers to a billing line in which the unit price, quantity, or price extension is erroneous. 

 C4.2.6.1.1. A wrong amount billed refers to a detail billing record in which the unit price, quantity, or price extension is erroneous. The error may be in either direction and shall be reported in the DI code FAE or FJE format prescribed for BAC “12." 

 C4.11.2.2. Exceptions. Do not request adjustment for wrong amount if: C4.2.6.1.2. Do not request adjustment for wrong amount under the following conditions:  C4.11.2.2.1. The unit price is the correct standard or catalog price and you are questioning the price. Follow price challenge procedures instead. 

 C4.2.6.1.2.1. The billing unit price is the standard or catalog price and you are questioning the catalog price used for billing. Follow, instead, price challenge and verification procedures. See section C4.7.  C4.2.6.1.2.2. The extension does not agree with the amount billed and Sales Price Condition code “B” is indicated. In this case, the unit price shown on the billing record is the inventory carrying value, the standard unit price. The billing unit price, if needed, must be computed. 

 C4.11.2.2.2. The quantity billed equals the quantity ordered or shipped and a lesser quantity is received. Follow the appropriate Volume 2 discrepancy reporting procedure instead. 

 C4.2.6.1.2.3. The quantity billed equals the quantity ordered or shipped and a lesser quantity is received. Follow the appropriate discrepancy reporting procedures instead. 

 C4.11.3. Wrong Office Billed C4.2.6.2 Wrong Office Billed 
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 C4.11.3.1. Request. Request an adjustment for wrong office billed when the office billed does not agree with the coded requirements of the requisition or adjustment request and the coding indicated a valid billed office DoD Activity Address Code (DoDAAC). A valid billed office DoDAAC is one listed in the DoD Activity Address Directory (DoDAAD) with the proper authority code (See Chapter 6, C6.2.2.1.2 of this volume). 

 C4.2.6.2.1. Request an adjustment for wrong office billed (BAC “13”) when the office billed does not agree with the billed office specified in the requisition or similar order, or when the billed office for an adjustment differs from the office originally billed. 

 C4.11.3.2.Invalid Coded Information. If the coded information used to derive the billing office does not provide for a valid DoDAAC and the billing office assigned the billed office as prescribed in Chapter 2, the adjustment may be denied. 

 C4.2.6.2.2. When the billing was prepared in accordance with the requisition or modification received by the ICP/IMM, the request shall be denied. 

 C4.11.3.3. Wrong Office Assigned. When the billing office assigned the billed office as prescribed in Chapter 2 and the office assigned is not the intended office, the billed office will transfer or otherwise process the bill in accordance with procedures prescribed by the DoD Component. If the offices involved are serviced by the same finance center, the billed office shall contact the intended billed office or requisitioner and make arrangements for transferring the bill. 

 C4.2.6.2.3. When both the wrong office billed and the intended office are serviced by the same interfund central accounts office (CAO) (Defense Finance and Accounting Service-Indianapolis Center(DFAS-IN), DFASDenver center(DFAS-DE), or DFAS-Cleveland Center)(DFASCL)) contact the CAO representative to the Finance PRC for instructions. 
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 C4.11.4. Improper Billing  C4.11.4.1. General. A DS 812R, Adjustment Request, citing the proper billing advice code should be submitted to billing offices to request adjustments for improper billings. For purposes of this section, an improper billing is a billing line which:  C4.11.4.1.1. Charges for materiel requisitioned under nonreimbursable procedures  C4.11.4.1.2. Charges improperly for accessorial costs;  C4.11.4.1.3. Charges for materiel following a reply that a billing could not be rendered; or  C4.11.4.1.4. Charges for materiel confirmed cancelled when the materiel is not received. 

 C4.2.5.1. Improperly Billed Interfund to Noninterfund

 C4.11.4.2. Exceptions. When the "cancelled" materiel is received or if the requisition was not confirmed cancelled by the inventory control point (ICP) or integrated materiel manager (IMM), financial procedures do not apply. Follow instead Volume 2 procedures prescribed for reporting supply discrepancy reports (SDRs). Although annotations on a shipping document, in conjunction with other factors, may support a discrepancy report, they do not support an adjustment for improper billing. A validated discrepancy report is needed. 

 C4.2.6.5. Cancelled. When a billing for materiel is received on a requisition that was confirmed cancelled by the ICP or IMM and the materiel is not received, a request for adjustment in the format prescribed for BAC “17" shall be forwarded to the billing office. When the materiel was received or if the requisition was not confirmed cancelled by the ICP or IMM, MILSBILLS procedures do not apply. Follow instead procedures prescribed for reporting Supply Discrepancy Reports (SDRs). Although annotations on a shipping document, in conjunction with other factors, may support a discrepancy report, they do not support an adjustment for improper billing. A validated discrepancy report is needed. 
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 C4.2.6.6. Backordered. A request for adjustment in the format prescribed for BAC “18" shall be forwarded to the billing office whenever a billing is received on a requisition that was backordered and the receipt of the billing status, confirming that the materiel was not recieved. Do not submit requests citing BAC “18" prior to obtaining this status.  C4.2.6.7. Billing Cannot Be Rendered. Billed offices shall request adjustment in the format prescribed for BAC “20" whenever the billing office issues a bill after advising, in a response to a request for billing status (Billing Status Codes DC and DF), that a bill could not be rendered. 

 C4.11.5. Promised Adjustment Not Received. Billed offices shall forward a Adjustment Request (DS 812R, DIC FAB/FJR) with the proper billing advice code to the billing office to follow-up on promised adjustments which are not received and more than 30 calendar days have elapsed since receiving a reply promising the billing or adjustment. 

 C4.2.4.2. Promised Adjustment Not Received. A request for adjustment citing BAC “23" shall be prepared when a billing or adjustment is not received and more than 30 calendar days have elapsed since receiving a reply (DI code FAR or FJR) to a request for adjustment promising the billing or adjustment. If the adjustment promised relates to a discrepancy report, refer to the section on adjustment for discrepancy reports (paragraph C4.2.7).  C4.2.4.3. Lateral Redistributions (ISV For Both Consumables and Reparables). Offices promised credits for lateral redistributions (ISV for both consumables and reparables) shall follow up on credits not received within 30 calendar days of the date shipment confirmation is submitted to the IMM/ICP. The initial request must be made by submitting a Request for Billing Adjustment (DS 812R, DIC FAE) record citing BAC “27” to the IMM/ICP. 
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 C4.11.6. Other Billing Problems. Billed offices or others will request adjustments for problems not covered by billing advice codes by forwarding a letter (or message) of explanation along with the information required to process the request. The billing office will normally respond with a DS 812L, Adjustment Request. 

 C4.2.9. Other Billing and Adjustment Problems. Billed offices or others shall request adjustments for problems not covered by this section by forwarding a letter (or message) of explanation along with the information prescribed for BAC “55." Billing offices shall respond, via DSN, in the DIC FAR or FJR format. If required, or deemed appropriate, the billing office shall also respond by letter or message. C4.7. PRICE CHALLENGES AND VERIFICATION  C4.7.1. DoD 4140.1-R (reference (

c)) prescribes the 

basic DoD requirements under Service and Agency Price Challenge And Price Verification Programs. Price challenges and verification are often mistaken for MILSBILLS "wrong unit price billed" procedures. Contact the IMM/ICP customer service for assistance filing price challenges. C4.8. DISPUTED RESPONSES TO REQUESTS FOR ADJUSTMENT. Billing and billed offices are expected to resolve their differences regarding adjustment requests. However, when a billed office does not agree with billing office’s response and the billed office considers the amounts involved significant, the billed office may consider the dispute an unresolved problem and follow the procedures prescribed in Chapter 1. 
 Page 26 Enclosure (3), Comparison Chart of Chapter 4

DoD 4000.25-M, Volume 5, Finance DoD 4000.25-7-M (MILSBILLS)

C4.12. ADJUSTMENTS FOR CHANGE NOTICES  C4.12.1. Recording Undelivered Orders. If an order is placed with or through the DWCF, an undelivered order (obligation) should be recorded when the order is placed. A non-stock numbered item should be recorded as an undelivered order when the order is accepted. An adjustment to the undelivered order should be processed when a change notice affecting price, quantity, or an acceptable substitution of a like item is received from the stock fund. Refer to the DoD 7000.14-R, Volume 6, for more specific information on the above requirements. 

 C4.2.8. Adjustment for Change Notices  C4.2.8.1. An adjustment to an undelivered order (obligation) may be requested by the ordering activity when a change notice affecting price, quantity, or an acceptable substitution of a like item is received. 

 C4.12.2. Customer Not Receiving Change Notice. If a DBOF customer does not receive a change notice or does not receive it in time to cancel or modify the order and additional funds are required, the materiel may be refused or returned to the DBOF and an adjustment requested. Adjustments for this reason shall be forwarded by mail and must be signed by the activity accounting officer. The request must meet the following requirements and will state essentially: 

 C4.2.8.2. If a working capital fund customer does not receive a change notice or does not receive it in time to cancel or modify the order and additional funds are required, the materiel may be refused or returned to the working capital fund and an adjustment requested. Adjustments for this reason shall be forwarded by mail and must be signed by an activity’s senior operational financial official. The request shall state essentially: 

"As a result of a price change, quantity change, or authorized substitution, the value of the materiel received exceeds amounts obligated and all available obligation authority. Request credit for the indicated quantity and items delivered under the following requisition document and suffix number. In addition, provide us with the return instructions for the materiel." 

“As a result of a price change, quantity change, or authorized substitution, the value of the materiel exceeds amounts obligated and all available obligation authority. Request credit for the indicated quantity and items delivered under the following requisition document and suffix number. In addition, provide us with the return instructions for the materiel.” 
 Page 27 Enclosure (3), Comparison Chart of Chapter 4

DoD 4000.25-M, Volume 5, Finance DoD 4000.25-7-M (MILSBILLS)

 C4.12.3. Honoring Requests. The billing office shalll honor all such requests and provide adjustment, without regard to dollar value, after the materiel is returned. The billing office shall also contact the item manager (requisition processing office) to arrange for the return.

 C4.5.3.3. Billing offices shall honor all adjustment for change notice requests and provide adjustment, without regard to dollar value, after the materiel is returned.

C4.2.8.3. The ordering activity shall also contact 

the ICP/IMM to arrange for the return.

C4.13. ADJUSTMENTS FOR FMS DISCREPANCIES AND BILLING ERRORS. The Military Departments may automatically grant adjustments2 and charge or credit the administrative surcharge fund when:  C4.13.1. The request cannot be rejected per the agreement with the FMS customer and  C4.13.2. The amount of the adjustment requested is either (1) less than $100 or (2) less than the amount approved3 for that Military Department by the Defense Security Cooperation Agency. 

C4.6. SECURITY ASSISTANCE DISCREPANCIES AND BILLING ERRORS  C4.6.1. The Military Department may automatically grant adjustments4 and charge or credit the administrative surcharge fund when:  C4.6.1.1. the request cannot be rejected per the general conditions of the U.S. Letter of Offer and Acceptance, and  C4.6.1.2. the transaction was billed on a DD Form 645A, Foreign Military Sales Statement.  C4.6.2. Adjustments for IMM/ICP charges which may not be automatically charged to the administrative fund shall be prepared and forwarded to the IMM/ICP in accordance with the procedures contained in this chapter. 

2 Automatic adjustments may be withheld from specific customers if there is a pattern of abuse of this authority. When such a pattern exists, all discrepancies and billing errors from that customer should be researched. 3 Military Departments may request approval for a different adjustment level. The dollar amounts of automatic adjustments will be determined by an agency cost effectiveness study which compares the administrative cost of conducting necessary research to determine specific responsibility versus the cost which will be incurred by the administrative surcharge pool if an automatic refund is authorized. The agency cost effectiveness study must be submitted to Defense Security Cooperation Agency for review and approval. 
 Page 28 Enclosure (3), Comparison Chart of Chapter 4

DoD 4000.25-M, Volume 5, Finance DoD 4000.25-7-M (MILSBILLS)

C4.14. CREDITS FOR EXCESS REPORTS (MATERIEL RETURNS PROGRAM)  C4.14.1. Procedures. Materiel returns program procedures are prescribed by Volume 2.  C4.14.2. Processing Credits. Billing offices shall process credits for excess reports during the first billing cycle after receiving notification that materiel, authorized for return under creditable procedures, has been received in a condition warranting credit. 

 C4.5.1.4. Billing offices shall process credits for Customer Asset Reports during the first billing cycle after receiving notification that materiel, authorized for return under creditable procedures, has been received in a condition warranting credit. In the case of IMM directed lateral redistributions, credits to the reporting activity shall be processed upon notification of shipment by the reporting activity. The portion of credits for materiel laterally redistributed may be fully or partially reversed by the IMM when a discrepancy report documents the materiel was not shipped in a condition warranting full credit.  C4.2.4.4. MRP or Procurement Offset Status Request (ISV For Both Consumables and Reparables). Offices expecting MRP or procurement offset (ISV for both consumables and reparables) shall request credit status using the Follow-up for Materiel Returns Program Credit (DS 812R, DIC FTP). The initial request should be prepared when the credit has not been received and more the 30 calendar days have elapsed since the Materiel Receipt Status (DS 870M, DI code FTZ), citing a creditable status or the Shipment Status (DS 856S, DIC AS6) is received by the IMM/ICP. 

4 Automatic adjustments may be withheld from specific customers if there is a pattern of abuse of this authority. When such a pattern exists, all discrepancies and billing errors from that customer should be researched. 
1 

Enclosure (4), Summary of PDC Comments 

Summary of PDC Comments for PDCs 488, 490, 491, and 493 

As of: 2/23/2012 2:12 PM

Originator PDC Response/Comment Resolution 

1. Army (FMS) 490 On page C6-4, Section C6-5.2 Logging On.... the 

information details the OLD way of accessing the 

system to query the interfund bills. The subsequent 

screen shots document the OLD procedure as well. 

Attached find the current screen access. The current 

process and screen shots should be incorporated into 

the DLMS guidance. 

Kept introduction to 

access MILSINQ, but 

removed step-by-step 

instructions. 

2. I addition, as I provided to Paul Macias, the FMR, 

7000.14R, Volume 15, Chapter 6 addresses record 

retention of supporting documentation for FMS 

Cases, Paragraph 060102 states: "The record 

retention period for FMS documents is 10 years 

from the date of final case closure. The Defense 

Security Cooperation Agency (DSCA) may issue 

exceptions to this retention period, e.g., for records 

associated with ongoing litigation proceedings and 

country suspensions." Which is in conflict with 

Section C6.2.3. of 4 years. 

Chapter 2 staffed in ADC 

491 with a question about 

retention periods. 

Believe the language in 

Chapter 6 is fine since the 

retention period likely is 

not on DLA Transaction 

Services. 

3. 491 Assume numbering of subparagraphs will be 

updated: for example draft sent out reflecting the 

following: 

C2.1.1.4 

 C2.1.2.4.1 should be C2.1.1.4.1 

 C2.1.2.4.2 should be C2.1.1.4.2 

Similar paragraph numbering issues were noted 

throughout. 

C2.2.4.2. Air Force bill to DODAAC FA2303 is 

obsolete. All reverences should be changed to 

FG2303. 

Paragraph C2.2.6.6.4 - need to updated country code 

to Security Cooperation Customer Code and suggest 

rewording to: "when there are different Security 

Assistance Customer Codes." Or something similar - 

I think what they are trying to indicate that each 

customer code should have a separate bill. 

Paragraph C2.3 - record retention 

As previously discussed - if I am reading this 

Corrected numbering. 

Numbering will be 

updated according to final 

content. 

Applied 

Applied 
2 

Enclosure (4), Summary of PDC Comments 

Originator PDC Response/Comment Resolution 

correctly you are addressing 3 different 

organizations responsibilities: Billing Office 

(C2.3.1), Supplying Organization for validating 

discrepancies (C2.3.2), and Security Assistance 

Activity responsible for maintaining documentation 

supporting billing to the Foreign Purchaser (C2.3.3). 

Suggest rewording of C2.3.3 as follows: "For 

security assistance, interfund bills are considered 

supporting execution documentation required to be 

maintained by the Implementing Agency in 

accordance with the DoD 7000.14R, Volume 15, 

0602.J.7." 

C2.8 INTO-PLANE FUEL SALES - does not 

address Security Assistance - should it or is this 

addressed elsewhere? 

C2.9.2.2. states "When generators want ..." I don't 

think "generators" can make that decision. Needs to 

be reworded. Same issue throughout - think you 

may want to reword section so it talks to a requestor 

of the service. 

References to the Foreign Assistance Act should be 

followed by ",as amended" whenever used: 

specifically C2.1.2.4.1. there may be other sections 

where it was cited as well. 

C2.12 and C2.13 - Addresses Army and Navy 

Exchange Pricing Process - shouldn't Air Force be 

addressed as well? 

FPRC modified language 

to cite DFAS SCA 

responsibility according to 

DoD 7000.14R, Volume 

15, Chapter 6. 

Forward to DLA, but left 

as is for now. 

Changed to “requestor of 

service” 

Applied 

No the Army and Navy 

exchange pricing 

processes were added by 

specific ADCs. 

4. Army 

(USASAC) 

488 Pg C1-2, Table C1.T1 Supplemental Instructions for 

USAF should indicate DFAS Indy Center in lieu of 

DFAS Denver Center 

AP2.1-1 DI Code FAE is duplicated. The second DI 

Code should be FAF with the TITLE of "Follow-up 

on Request for Adjustment of Non-Fuel Billing". 

AP2.10-1 Team questioned the Code "L"... and the 

Bill-To "Addressee designated by the fund code". 

 We have had problems in the past where 

the Signal Code "L" was not paired with OUR Fund 

Code "YY" and interfund bills were misrouted. 

Applied 

Applied 

Noted. 
3 

Enclosure (4), Summary of PDC Comments 

Originator PDC Response/Comment Resolution 

 The Ship-To/From "Supplementary 

Addressee, pos 45-50" should also be matched to 

OUR address W25P02. 

A general comment was made that most of the 

proposed changes need to be reviewed/approved by 

DFAS personnel since many of the Chapters address 

DFAS functions. 

DFAS is included in 

reviews. 

5. Marine Corps 488 Headquarters Marine Corps has reviewed the subject 

PDC and concurs as written. 

Noted. 

6. 493 Headquarters Marine Corps has reviewed the subject 

PDC and concurs as written. 

Noted. 

7. DFAS 488 Based off the requisitioning fund code the LOA will 

get crosswalked. If the fund code is not listed in the 

crosswalk it then gets defaulted to the agency's line 

of accounting. 

-C*, E*, L*, U* DODAACS non-interfund versus 

service/agency default 

-S*,T* DODAACs shows default of 97*0100 5100 

(which is no longer valid) versus 97X4930 5999 

-H* DODAACs show 97*0100 (no limit?) versus 

bill non-interfund. 

AP 2.2 

<http://www2.dla.mil/j6/dlmso/elibrary/manuals/milsbills/ap2.asp> 

Contractor (C,E,L,Q,U Not applicable, 

noninterfund 

NonDoD (G,Z,HX,Numeric) Not applicable, 

noninterfund 

Army (A,W) 21*2020 

Air Force (D,F) 57*3400 

Navy (N,P,R,V) 17*1804 

Marine Corps (K,M 17*1106 

Defense Logistics Agency (S,T) 97*0100.5100 

Other Defense Agency (H) 97*0100 

None of the above 97*0100 

AP 1.1 

BILLED SERVICE CODE = A,C,W (ARMY) - 

OTHERWISE 21*2020 BILLED SERVICE CODE 

= D,E,F (AIR FORCE) - OTHERWISE57*3400 

BILLED SERVICE CODE = H (OTHER 

DEFENSE AGENCIES) - OTHERWISEBILL VIA 

NONINTERFUND 

Corrected. Brought in 

line with ADC 294. 
4 

Enclosure (4), Summary of PDC Comments 

Originator PDC Response/Comment Resolution 

BILLED SERVICE CODE = K (MARINE CORPS) 

- OTHERWISE17*1106 BILLED SERVICE CODE 

= L,M (MARINE CORPS) - OTHERWISE17*1106 

BILLED SERVICE CODE = N (NAVY) - 

OTHERWISE17*1804 BILLED SERVICE CODE = 

P (NAVY) - OTHERWISE17*1804 BILLED 

SERVICE CODE = R (NAVY) - 

OTHERWISE17*1804 BILLED SERVICE CODE = 

S,T,U (DLA) - OTHERWISE97X49305999 

BILLED SERVICE CODE = V (NAVY) - 

OTHERWISE17*1804 

8. DLA Finance 491 All, 

The Air force , Marines ,Coast Guard and various 

NON-DOD DODAAC's receive roll- up billing 

under prime vendor and FF&V Long Term contracts 

thru STORES Troop Support FF&V billing is handle 

like prime vendor bills 

Schools is the only program going thru FFAVORS 

Schools bills are either billed Federal supplementary 

(1233HV) and State schools billed supplementary 

address (08****) 

As discussed, because all non-school FF&V orders 

are now done through STORES, the statement below 

about optional billing procedures is no longer valid. 

Those orders now follow the STORES interface into 

EBS, and therefore are billed using the same 

procedures in effect for all other Prime 

Vendor/Market Fresh items. The only FF&V orders 

that still use the FFAVORS interface are the orders 

from the USDA School Lunch program and Indian 

reservation customers. Those customers do not 

require this billing option. (John Graybill) 

 C2.8.2. Optional FF&V 

 No longer used 

Section permitting the 

FF&V billing option 

removed. 

9. DLA 

Transaction 

Services 

493 Para C4.1.1.4 - 470000 is not a valid DoDAAC ? 

Para C4.3.1.2 - don't believe that 

daashelp@daas.dla.mil is correct url ? 

should read daashelp@dla.mil 

Corrected GSA provided 

DoDAAC for the GSA 

National Customer 

Service Center. Updated 

email address for DAAS 

Help. 
5 

Enclosure (4), Summary of PDC Comments 

Originator PDC Response/Comment Resolution 

10 491 Para C.2.2.4.2 - DoDAAC FA2303 shown for Air 

Force security Assistance "Bill To" DoDAAC is 

incorrect. It should read FG2303. 

Applied. 

11 FPRC Chair 491 Incorporate the language from FMR requiring 

interfund billing into section C2.2.3. for the Method 

of Billing: 

(Extracted from “DoD 7000.14-R, Volume 4, 

Chapter 3 Receivables, Paragraph 030504.B”) 

“B. Bills arising from transactions which contain a 

National Stock Number within the DoD will be 

collected through the Military Standard Billing 

System (MILBILLS) interfund billing procedures 

when supported by the supply and accounting 

systems. The provider will not accept a MIPR if 

interfund can be used. Manual billing (i.e., the XP 

fund code) will not be used unless approved by the 

Deputy Chief Financial Officer. For 

intragovernmental interfund disputes, follow the 

dispute process outlined in DoD Manual 4000.25-7, 

Chapter 4.” 

Applied. 

12 FPRC Chair 488 Revisit ADC 294 which modified MILSBILLS 

Chapter 5 to send the Statements of Interfund 

Transactions to Treasury instead of OSD. Refer to 

recent discussions between DoD Interfund parties 

and Treasury for background (Topic 12.c. of the 

November 2011 Finance PRC). 

Also, Seller Interfund Report from seller to seller 

CAO may be the Statement of Interfund 

Transactions (DD 1400 ) and that step 7, Statement 

of Transactions from Seller CAO to Treasury may 

be the Statement of Transactions (SF 1220). Also 

from our internal discussions, is appears that the 

Statement of Accountability (SF 1219) is not 

applicable to Interfund Transactions. DFAS, please 

review and confirm. 

Inserted DFAS-CL 

provided language to 

reflect Navy waiver to 

continue using suspense 

accounts 

Being worked through as 

part of SIBAC/IPAC 

discussions with Treasury.

13 Air Force 491        ADC 491, Enclosure 2

1)      [Page 11] (DLMS C2.2.3.2) FPRC reps are asked to

validate how it is possible to accept orders without a Bill

To party identified.  SAF/FMP AFAFO...GOOD QUESTION,

NO IDEA?  I DID NOT SEE THIS EXPRESSED IN ADC491

Noted. Language tweaked 

by 11/16/2011 FPRC 

meeting consensus 

 
6 

Enclosure (4), Summary of PDC Comments 

14 493        ADC 493, Enclosure 2

1)       [Page 5] (DLMS C4.1.5.3.) Component comment

requested.  Note changes in proposed language.  

Component comment requested regarding adoption of

the MILSBILLS simple statement on minimum values.  

SAF/FMP AFAFO CONCUR

2)      [Page 6] (DLMS C4.3.1.) Note differences in follow‐

up dates. Component comments requested.  SAF/FMP

AFAFO WOULD CHANGE THIS TO 30 AND 15 DAYS

REPECTIVELY

3)      [Page 7] (DLMS C4.3.3.) Note differences in follow‐

up dates. Component comments requested.  SAF/FMP

AFAFO WOULD CHANGE THIS TO 15  

4)      [Page 8] (DLMS C4.4.2.) Note differences in follow‐

up dates. Component comments requested.

SAF/FMP AFAFO CONCUR

5)       [Page 12] (DLMS C4.8.3.) Component comment

requested regarding maintaining this bill reversal

process.  SAF/FMP AFAFO DEFER THIS TO DFAS

6)      [Page 17] (DLMS C4.10.2.1./MILSBILLS C4.2.7.5.)  

Note differences in follow‐up dates.  Component

comments requested.  SAF/FMP AFAFO CONCUR

7)      [Page 21] (C4.2.6.2.2.) FPRC reps are asked to

validate how this is possible.  (See related issue and

request for comment in PDC 491, Enclosure 2, Page 11.)  

SAF/FMP AFAFO HAS NO IDEA WHAT THIS IS

SAYING...DFAS, CAN YOU COMMENT ON THIS ONE?

8)       [Page 27] Request components comment on the

proper requirement for the whom the billing manager is

to contact for arranging the return. (Second sentence of

C4.12.3 from DoD 4000.25‐M, Volume 5 vs. C4.2.8.3.

from MILSBILLS.) Need to apply one or the other.  

SAF/FMP AFAFO DEFER THIS TO DFAS

Noted. 11/16/2011 FPRC 

meeting settled on DLMS 

language as good enough. 

Noted. FPRC consensus 

was for 14 days for both. 

Noted. FPRC consensus 

was for 30 days. 

Noted. FPRC consensus 

was for 13 days to match 

agreement on requests. 

Noted. 

Noted. FPRC consensus 

concurred. 

Noted. No change. 

Noted. FPRC consensus 

was for the MILSBILLS 

language.